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Monday, March 23, 2015 - Top of Page
1123

STATE OF
MINNESOTA

EIGHTY-NINTH
SESSION-2015

_____________________

THIRTY-SECOND
DAY

Saint Paul, Minnesota, Monday, March 23, 2015

The House of Representatives convened at
3:30 p.m. and was called to order by Greg Davids, Speaker pro tempore.

Prayer was offered by Pastor Matthew
Molesky, Calvary Community Church, St. Cloud, Minnesota.

The members of the House gave the pledge
of allegiance to the flag of the United States of America.

The roll was called and the following
members were present:

Albright

Allen

Anderson, P.

Anderson, S.

Anzelc

Applebaum

Atkins

Backer

Baker

Barrett

Bennett

Bernardy

Bly

Carlson

Christensen

Clark

Considine

Cornish

Daniels

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Dill

Drazkowski

Erhardt

Erickson

Fenton

Fischer

Franson

Freiberg

Garofalo

Green

Gruenhagen

Gunther

Halverson

Hamilton

Hancock

Hansen

Hausman

Heintzeman

Hertaus

Hilstrom

Hoppe

Hornstein

Hortman

Howe

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Knoblach

Koznick

Kresha

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Loonan

Lucero

Lueck

Mack

Mahoney

Mariani

Marquart

Masin

McDonald

McNamara

Melin

Metsa

Miller

Moran

Mullery

Murphy, E.

Murphy, M.

Nash

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Pelowski

Peppin

Persell

Petersburg

Peterson

Pierson

Pinto

Poppe

Pugh

Quam

Rarick

Rosenthal

Runbeck

Sanders

Schoen

Schomacker

Schultz

Scott

Selcer

Simonson

Slocum

Smith

Sundin

Swedzinski

Theis

Thissen

Torkelson

Uglem

Urdahl

Vogel

Wagenius

Ward

Whelan

Wills

Winkler

Yarusso

Youakim

Zerwas

Spk. Daudt

A quorum was present.

Anderson, M., was excused.

Kiel was excused until 4:10 p.m.Fabian and Hackbarth were excused until 7:40
p.m.

The Chief Clerk proceeded to read the
Journal of the preceding day.There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.

Journal of
the House - 32nd Day - Monday, March 23, 2015 - Top of Page
1124

PETITIONS AND COMMUNICATIONS

The
following communication was received:

STATE
OF MINNESOTA

OFFICE
OF THE SECRETARY OF STATE

ST.
PAUL 55155

The Honorable Kurt
L. Daudt

Speaker of the House
of Representatives

The Honorable Sandra
L. Pappas

President of the
Senate

I
have the honor to inform you that the following enrolled Act of the 2015
Session of the State Legislature has been received from the Office of the
Governor and is deposited in the Office of the Secretary of State for
preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2015

Date Filed

2015

57852:10
p.m. March 19March
19

Sincerely,

Steve
Simon

Secretary
of State

REPORTS OF STANDING COMMITTEES AND
DIVISIONS

Anderson, P.,
from the Committee on Agriculture Policy to which was referred:

Subdivision 1.Establishment.(a) The commissioner shall establish
and administer a grant program to provide financial and technical assistance to
cities, organizations, or individuals for urban agriculture projects.Grant applications must be submitted to the
commissioner on forms provided by the commissioner.The commissioner shall award grants to
meritorious projects within the limits of available funding.

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(b) For purposes of this
section, "eligible city" means a Minnesota home rule or statutory
city located in:

(1) the seven-county metropolitan area,
as defined under section 473.121, subdivision 2; or

(2) the core county or counties of a
metropolitan statistical area.

Subd. 2.Grants
to organizations or individuals.The
commissioner shall solicit grant applications from individuals and
organizations for projects located in urban agriculture development zones in
eligible cities.The commissioner shall
rank applications based on the project's ability to:

(1) increase fresh food access,
including access to affordable organic foods, to improve both local and
regional food security through the development of urban agriculture projects;
and

(2) reduce or eliminate health
disparities related to food access.

Subd. 3.Grants
to cities.The commissioner
shall solicit grant applications from eligible cities that have adopted a
zoning ordinance that designates urban agriculture development zones.Applicant cities must certify to the
commissioner that the ordinance will remain in effect for at least ten years
and must repay any grant funds received under this section if the ordinance is
repealed or amended to prohibit urban agriculture during the ten-year period.

Subd. 2.Loan
criteria.(a) The shared savings
loan program mustmay provide loans for purchase of new or used
machinery, urban agriculture development, and installation of equipment
for projects that make environmental improvements and enhance farm
profitability.Eligible loan uses do not
include seed, fertilizer, or fuel.

(b) Loans may not exceed $40,000 per
individual or organization applying for a loan and may not exceed
$160,000 for loans to four or more individuals or to two or more
organizations on joint projects.The
loan repayment period may be up to seven years as determined by project cost
and energy savings.The interest rate on
the loans must not exceed six percent.

(c) Loans may only be made to residents and
organizations of this state engaged in farming.

Subd. 3.Awarding
of loans.(a) Applications for loans
must be made to the commissioner on forms prescribed by the commissioner.

(b) The applications must be reviewed,
ranked, and recommended by a loan review panel appointed by the commissioner.The loan review panel shall consist of two
lenders with agricultural experience, two resident farmers of the state using
sustainable agriculture methods, two resident farmers of the state using
organic agriculture methods, a farm management specialist, two residents of
the state practicing urban agriculture, a representative from a
postsecondary education institution, and a chair from the department.

(c) The loan review panel shall rank
applications according to the following criteria:

(1) realize savings to the cost of
agricultural production;

(2) reduce or make more efficient use of
energy or inputs;

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(3)
increase overall farm profitability; and

(4) result in environmental benefits.

(d) A loan application must show that the
loan can be repaid by the applicant.

(e) The commissioner must consider the
recommendations of the loan review panel and may make loans for eligible
projects.

Sec. 4.APPROPRIATION.

$3,000,000 in fiscal year 2016 and
$3,000,000 in fiscal year 2017 are appropriated from the general fund to the commissioner of agriculture for urban agriculture
development grants under section 1.Between July 1 and January 1in
each fiscal year, $1,000,000 is reserved for grants to cities, $1,000,000 is
reserved for grants to organizations, and $1,000,000 is reserved for
grants to individuals.From January 2 to
June 30 in each fiscal year, the commissioner may award remaining funds to any
eligible city, organization, or individual."

Subd. 6.Limitations.The council may not issue certificates
of indebtedness, bonds, or other obligations secured in part or in whole by a
pledge of motor vehicle sales tax revenue received under sections 16A.88 and
297B.09, or by a pledge of any earnings from the council's investment of motor
vehicle sales tax revenues.

EFFECTIVE
DATE; APPLICATION.This
section is effective the day following final enactment, and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Subd. 6.Light
rail transit development; legislative authorization.(a) The commissioner of transportation
and any political subdivision, including but not limited to the Metropolitan
Council, a regional railroad authority, a county, and a statutory or home rule
charter city, may not complete an alternatives analysis or select a locally
preferred alternative for a light rail transit project unless (1) a law is
enacted that specifically identifies and authorizes the project, or (2) state
funds are appropriated specifically for the project.

(b) The powers conferred under sections
473.399 to 473.3999 to a responsible authority, as defined in section 473.3993,
subdivision 4, are subject to the requirements under this subdivision.

EFFECTIVE
DATE.This section is
effective the day following final enactment, and applies for any project not
approved by the Federal Transit Administration for preliminary engineering or a
subsequent project phase as of the effective date of this section.That portion of this section that relates to
the Metropolitan Council applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.

Subd. 2.Operating
costs.After operating revenue and
federal money have been used to pay for light rail transit operations, 50100 percent of the remaining operating and ongoing maintenance
costs must be paid by the statefrom nonstate sources.For purposes of this subdivision, state
sources include but are not limited to general fund appropriations and revenue
from the motor vehicle sales tax under chapter 297B.

EFFECTIVE
DATE.This section is
effective July 1, 2015, and applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.

Sec. 5.METROPOLITAN
COUNCIL; BASE APPROPRIATIONS.

Notwithstanding Laws 2013, chapter 117,
article 1, section 4, and Laws 2014, chapter 312, article 9, section 9, the
base appropriation from the general fund to the Metropolitan Council for
transit system operations under Minnesota Statutes, sections 473.371 to
473.449, in each fiscal year is the greater of zero or:

(1) $76,626,000; less

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(2) funds available to the
council in that fiscal year under Minnesota Statutes, section 16A.88,
attributable to motor vehicle sales tax revenue under Minnesota Statutes,
section 297B.09; less funds appropriated to the council in fiscal year 2015
under Minnesota Statutes, section 16A.88, attributable to motor vehicle sales
tax revenue.

EFFECTIVE
DATE.This section is
effective the day following final enactment."

With the recommendation that when so
amended the bill be re-referred to the Committee on Transportation Policy and
Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 283, A bill for
an act relating to the military; designating certain lands around Camp Ripley
as sentinel landscape; creating a coordinating committee; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 190.

Reported the same back with the following
amendments:

Delete everything after the enacting
clause and insert:

"Section 1.[190.33]
CAMP RIPLEY SENTINEL LANDSCAPE.

Subdivision 1.Designation
of certain lands.(a) Camp
Ripley shall be a sentinel landscape.By
January 16, 2017, the coordinating committee established under subdivision 2
shall designate certain lands in the vicinity of Camp Ripley to be contained in
the sentinel landscape of Camp Ripley.The
purpose of this designation shall be to identify lands important to the
nation's defense mission in an effort to preserve and enhance the relationship
between willing landowners and Camp Ripley and to create incentives to
encourage landowners' land management practices to be consistent with Camp
Ripley's military missions.

(b) Individuals who own land that is
deemed part of the sentinel landscape shall be provided the opportunity to
participate, on a voluntary basis, in various programs designed to encourage
land uses compatible with Camp Ripley's military missions.

Subd. 2.Establishment
of coordinating committee.(a)
By March 1, 2016, the adjutant general shall establish a coordinating committee
to address issues related to technical support services and appropriate
financial assistance to landowners who voluntarily participate in the sentinel
landscape program in subdivision 1.

(b) The committee will be comprised of
the following individuals:

(1) the adjutant general or a designee
who will serve as the chair of the committee;

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(2) the commissioner of
agriculture or a designee;

(3) the commissioner of natural
resources or a designee; and

(4) the executive director of the Board
of Water and Soil Resources or a designee.

The committee may also seek input from
federal agencies, including but not limited to the Department of Defense, the
Department of the Army, the National Guard Bureau, the Department of the
Interior, or the Department of Agriculture.The committee may also appoint members from other state agencies, county
officials from any county where sentinel landscapes are located, and
nongovernmental organizations that participate in land management activities
within the sentinel landscape.

Subd. 3.Meetings.The chair shall convene meetings as
necessary to conduct the duties prescribed in this section.The chair shall convene the first meeting of
the committee by March 1, 2016.

Subd. 4.Duties.The committee shall identify sentinel
land and develop recommendations to encourage landowners within the sentinel
lands to voluntarily participate in and begin or continue land uses compatible
with Camp Ripley's military mission.In
designating sentinel lands, the coordinating committee shall include all
working or natural lands, wherever located, that the coordinating committee
believes contribute to the long-term sustainability of the military missions
conducted at Camp Ripley.In determining
which lands to designate, the coordinating committee shall seek input from the
director of the Department of Defense Readiness and Environmental Protection
Integration Program, the chief of the National Guard Bureau, the director of
the Army Compatible Use Buffer Program, the commander of the Camp Ripley
Training Center, the commissioner of agriculture, the commissioner of natural
resources, the executive director of the Board of Water and Soil Resources,
appropriate county commissioners from any county where designated lands are
located, and any others the adjutant general deems appropriate.

Subd. 5.Compensation.Members of the committee will serve
without compensation.

Subd. 6.Report.By January 16, 2017, the adjutant
general, with the assistance of the coordinating committee established in
subdivision 2, shall submit a report to the governor and to the chairs of the
committees in the house of representatives and senate with primary jurisdiction
over the Department of Military Affairs.The report must summarize the committee's efforts to encourage
landowners within the Camp Ripley sentinel landscape to voluntarily participate
in and begin or continue land uses compatible with Camp Ripley's military
mission.This report will include a map
that geographically defines the boundaries of the sentinel landscape and may
also provide recommendations for any further legislation the coordinating
committee deems necessary to further the goals of this program.

EFFECTIVE
DATE.This section is
effective the day following final enactment."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Anderson, S.,
from the Committee on State Government Finance to which was referred:

Reported the same back with the
recommendation that the bill be placed on the General Register.

The report was adopted.

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Cornish from the Committee on
Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 305, A bill for
an act relating to public safety; amending the Minnesota Personal Protection
Act to recognize the North Dakota permit to carry a pistol as being valid
within Minnesota; amending Minnesota Statutes 2014, section 624.714,
subdivision 16.

Subd. 16.Recognition
of permits from other states.(a)
The commissioner must annually establish and publish a list of other states
that have laws governing the issuance of permits to carry weapons that are not substantially
similar to this section.The list must
be available on the Internet.A person
holding a carry permit from a state not on the list may use the license or
permit in this state subject to the rights, privileges, and requirements of
this section.

(b) Notwithstanding paragraph (a), no
license or permit from another state is valid in this state if the holder is or
becomes prohibited by law from possessing a firearm.

(c) Any sheriff or police chief may file a
petition under subdivision 12 seeking an order suspending or revoking an
out-of-state permit holder's authority to carry a pistol in this state on the
grounds set forth in subdivision 6, paragraph (a), clause (3).An order shall only be issued if the
petitioner meets the burden of proof and criteria set forth in subdivision 12.If the court denies the petition, the court
must award the permit holder reasonable costs and expenses including attorney
fees.The petition may be filed in any
county in the state where a person holding a license or permit from another
state can be found.

(e) The commissioner shall not place
the class 1 carry permit issued by the state of North Dakota on the list
required under paragraph (a).This
restriction expires if North Dakota amends the requirements for obtaining a
class 1 carry permit after March 18, 2015, and the commissioner determines that
North Dakota's law is not similar to this section."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Health and
Human Services Finance.

The report was adopted.

Scott from the
Committee on Civil Law and Data Practices to which was referred:

H. F. No. 321, A bill for
an act relating to health occupations; providing for an interstate medical
licensure compact project; proposing coding for new law in Minnesota Statutes,
chapter 147.

Reported the same back with the
recommendation that the bill be placed on the General Register.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

H. F. No. 322, A bill for
an act relating to public safety; clarifying legislators' privilege from
arrest; specifying that driving while impaired constitutes a breach of the
peace for purposes of the Constitution; amending Minnesota Statutes 2014,
section 3.151; proposing coding for new law in Minnesota Statutes, chapters 3;
169A.

Reported the same back with the following
amendments:

Page 2, line 7, delete "169A.79"
and insert "609.0225"

Correct the title numbers accordingly

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Scott from the
Committee on Civil Law and Data Practices to which was referred:

H. F. No. 328, A bill for
an act relating to securities regulation; providing an exemption from
regulation for crowdfunding transactions; proposing coding for new law in
Minnesota Statutes, chapter 80A.

Reported the same back with the following
amendments:

Page 3, line 13, delete "public
accountant who is independent of the MNvest issuer" and insert "certified
public accountant firm licensed under chapter 326A"

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Page 3, line 15, delete "public
accountant who is"

Page 3, line 16, delete "independent
of the MNvest issuer" and insert "certified public accountant
firm licensed under chapter 326A"

Page 3, line 34, after "managers"
insert ", as provided to the escrow agent by the portal operator,"

Page 9, after line 32, insert:

"Subd. 8.Portal
operator; privacy of purchaser information.(a) For purposes of this subdivision, "personal
information" means information provided to a portal operator by a
prospective purchaser or purchaser that identifies, or can be used to identify,
the prospective purchaser or purchaser.

(b) Except as provided in paragraph
(c), a portal operator must not disclose personal information without written
or electronic consent from the prospective purchaser or purchaser that
authorizes the disclosure.

(c) Paragraph (b) does not apply to:

(1) records required to be provided to
the administrator under subdivision 7, paragraph (e);

(2) the disclosure of personal
information to a MNvest issuer relating to its MNvest offering; or

(3) the disclosure of personal
information to the extent required or authorized under other law."

Renumber the subdivisions in sequence

With the recommendation that when so
amended the bill be re-referred to the Committee on Job Growth and Energy
Affordability Policy and Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 437, A bill for
an act relating to family law; establishing a legislative surrogacy commission;
providing appointments; requiring a report.

(1) three members of the senate
appointed by the senate majority leader;

(2) three members of the senate
appointed by the senate minority leader;

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(3)
three members of the house of representatives appointed by the speaker of the
house of representatives;

(4) three members of the house of
representatives appointed by the house of representatives minority leader;

(5) the commissioner of human services
or the commissioner's designee;

(6) the commissioner of health or the
commissioner's designee; and

(7) a family court referee appointed by
the chief justice of the state Supreme Court.

Appointments must be made by June 1,
2015.

Subd. 2.Chair.The commission shall elect a chair
from among its members.

Subd. 3.First
meeting.The ranking majority
member of the commission who is appointed by the senate majority leader shall
convene the first meeting by July 1, 2015.

Subd. 4.Compensation.Members of the commission are
compensated as provided in Minnesota Statutes, section 3.101.

Subd. 5.Conflict
of interest.A commission
member may not participate in or vote on a decision of the commission in which
the member has either a direct or indirect personal financial interest.A witness at a public meeting of the
commission must disclose any financial conflict of interest.

Subd. 6.Duties.The commission shall develop
recommendations on public policy and laws regarding surrogacy.To develop the recommendations, the
commission shall study surrogacy through public hearings, research, and
deliberation.Topics for study include,
but are not limited to:

(1) potential health and psychological
effects and benefits on women who serve as surrogates;

(2) potential health and psychological
effects and benefits on children born of surrogates;

(3) business practices of the fertility
industry, including attorneys, brokers, and clinics;

(4) considerations related to different
forms of surrogacy;

(5) considerations related to the
potential exploitation of women in surrogacy arrangements;

(8) potential for legal conflicts
related to third-party reproduction, including conflicts between or amongst the
surrogate mother, the intended parents, the child, insurance companies, and
medical professionals;

(9) public policy determinations of
other jurisdictions with regard to surrogacy; and

(10) information to be provided to a
child born of a surrogate about the child's biological and gestational parents.

Subd. 7.Reporting.The commission must submit a report
including its recommendations and may draft legislation to implement its
recommendations to the chairs and ranking minority members of the legislative
committees with primary jurisdiction over health and judiciary in the house and
senate by December 15, 2015.On topics
where the commission fails to reach consensus, a majority and minority report
shall be issued.

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Subd. 9.Expiration.The commission expires the day after
submitting the report required under subdivision 7.

EFFECTIVE
DATE.This section is
effective the day following final enactment."

With the recommendation that when so
amended the bill be re-referred to the Committee on State Government Finance.

The report was adopted.

Garofalo from the Committee on Job Growth
and Energy Affordability Policy and Finance to which was referred:

H. F. No. 438, A bill for
an act relating to economic development; adopting the Minnesota New Markets
Jobs Act; providing capital for business growth in economically distressed
communities; imposing penalties; requiring a report; proposing coding for new
law as Minnesota Statutes, chapter 116X.

Reported the same back with the following
amendments:

Delete everything after the enacting
clause and insert:

"Section 1.[116X.01]
TITLE.

This chapter is titled and may be cited
as the "Minnesota New Markets Jobs Act."

Sec. 2.[116X.02]
DEFINITIONS.

Subdivision
1.Scope.For the purposes of this chapter, the
terms defined in this section have the meanings given.

Subd. 2.Affiliate.(a) For the purposes of subdivision
10, the term "affiliate" includes:

(1) any entity, without regard to
whether the entity is a qualified community development entity under
subdivision 10, that is the initial holder, either directly or through one or
more special purpose entities, of a qualified equity investment in the
qualified community development entity; and

(2) any entity, without regard to
whether the entity is a qualified community development entity under
subdivision 10, that provides insurance or any other form of guaranty to the
ultimate recipient of tax credits under section 116X.03 with respect to a
recapture or forfeiture of tax credits under section 116X.06, either directly
or through the guaranty of any other economic benefit that is paid in lieu of
the tax credits allowable under section 116X.03.

(b) The determination of whether an
entity is an affiliate must be made by taking into account all relevant facts
and circumstances, including the description of the proposed amount, structure,
and initial purchaser of the qualified equity investment required by section
116X.05, subdivision 1, clause (4), and the determination assumes that the
information provided pursuant to section 116X.05, subdivision 1, clause (4), is
true and complete as of the date an application is submitted pursuant to
section 116X.05.

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Subd. 3.Applicable
percentage."Applicable
percentage" means zero percent for the first two credit allowance dates,
eight percent for the third through sixth credit allowance dates, and seven
percent for the seventh credit allowance date.

Subd. 4.Code."Code" or "the
Code" means the Internal Revenue Code of 1986 as amended through the date
in section 290.01, subdivision 19.

Subd. 6.Department."Department" means the
Department of Employment and Economic Development.

Subd. 7.Long-term
debt security."Long-term
debt security" means any debt instrument issued by a qualified community
development entity at par value with an original maturity date of at least
seven years from the date of its issuance, with no acceleration of repayment,
amortization, or prepayment features prior to its original maturity date.The qualified community development entity
that issues the debt instrument must not make cash interest payments on the
debt instrument during the period beginning on the date of issuance and ending
on the final credit allowance date in an amount that exceeds the cumulative
operating income, as defined by regulations adopted under section 45D of the
Code of the qualified community development entity for that period prior to
giving effect to the expense of the cash interest payments.This subdivision does not limit the holder's
ability to accelerate payments on the debt instrument in situations where the
issuer has defaulted on covenants designed to ensure compliance with this
section or section 45D of the Code.

Subd. 8.Purchase
price."Purchase
price" means the amount paid to the issuer of a qualified equity investment
for such qualified equity investment.

Subd. 9.Qualified
active low-income community business.(a) "Qualified active low-income community business"
means a business as defined in section 45D of the Code and Code of Federal
Regulations, title 26, section 1.45D-1, and that is engaged primarily in a
qualified high-technology field, as defined in section 116J.8737, subdivision
2, paragraph (g), clause (1), manufacturing, mining, or forestry.A business is considered a qualified active
low-income community business for the duration of the qualified community
development entity's investment in, or loan to, the business if the entity
reasonably expects, at the time it makes the investment or loan, that the
business will continue to satisfy the requirements for being a qualified active
low-income community business, throughout the entire period of the investment
or loan.

(b) Qualified active low-income
community business excludes any business that derives or projects to derive 15
percent or more of its annual revenue from activities described in section
116J.8737, subdivision 2, paragraph (c), clause (4).

Subd. 10.Qualified
community development entity.(a)
"Qualified community development entity" has the meaning given in
section 45D of the Code, provided that the entity has entered into, for the
current year or any prior year, an allocation agreement with the Community
Development Financial Institutions Fund of the United States Department of the
Treasury with respect to credits authorized by section 45D of the Code, which
includes Minnesota within the service area set forth in the allocation
agreement.The term includes subsidiary
community development entities or affiliates of any qualified community
development entity, all of which are treated as a single applicant for purposes
of section 116X.05.

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(b) Qualified community
development entity excludes any regulated financial institution that is subject
to the Community Reinvestment Act of 1977, United States Code, title 12,
chapter 30, or any subsidiary or affiliate of a regulated financial
institution.

(c) Paragraph (b) does not apply to a
regulated financial institution, or its subsidiary or affiliate, if the
regulated financial institution is chartered by, or headquartered in, Minnesota
and the regulated financial institution otherwise meets the requirements of
paragraph (a).

(1) is acquired after January 1, 2016,
at its original issuance solely in exchange for cash;

(2) has at least 100 percent of its
cash purchase price used by the issuer to make qualified low-income community
investments in qualified active low-income community businesses located in this
state by the first anniversary of the initial credit allowance date; and

(3) is designated by the issuer as a
qualified equity investment under this subdivision and is certified by the
department as not exceeding the limitation contained in section 116X.05,
subdivision 4.

(b) Notwithstanding the restrictions on
transferability contained in section 116X.04, this term includes any qualified
equity investment that does not meet the provisions of paragraph (a) if the
investment:

(1) is transferred to a subsequent
holder; and

(2) was a qualified equity investment in
the hands of any prior holder.

(c) Qualified equity investment does not
include:

(1) any investment that entitles the
holder to claim tax credits under section 45D of the Code; or

(2) any investment, the proceeds of which
are used to make debt or equity investments in, directly or indirectly, any
other qualified community development entity.

Subd. 12.Qualified
low-income community investment."Qualified
low-income community investment" means any capital or equity investment
in, or loan to, any qualified active low-income community business.With respect to any one qualified active
low-income community business, the maximum amount of qualified low-income
community investments that may be made in the business, on a collective basis
with all of its affiliates, with the proceeds of qualified equity investments
that have been certified under section 116X.05 is $10,000,000 whether made by
one or several qualified community development entities.

Subd. 13.Refundable
performance fee."Refundable
performance fee" means a fee that a qualified community development entity
seeking to have an equity investment or long-term debt security designated as a
qualified equity investment and eligible for tax credits under section 116X.05
must pay to the department as assurance of compliance with certain requirements
of this chapter.The amount of the fee
equals one-half of one percent of the amount of the equity investment or
long-term debt security requested to be designated as a qualified equity
investment, up to a maximum performance fee of $500,000.

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Sec. 3.[116X.03]
CREDIT ESTABLISHED.

(a) Any entity that makes a qualified
equity investment earns a vested right to credit against the entity's state
premium tax liability on a premium tax report filed under this section that may
be utilized as described in paragraphs (b) to (e).

(b) On each credit allowance date of
the qualified equity investment, the entity, or subsequent holder of the
qualified equity investment, is entitled to utilize a portion of the credit
during the taxable year, including the credit allowance date.

(c) The credit amount equals the
applicable percentage for the credit allowance date multiplied by the purchase
price paid to the issuer of the qualified equity investment.

(d) The amount of the credit claimed by
an entity must not exceed the amount of the entity's state premium tax
liability for the tax year for which the credit is claimed.Any amount of tax credit that the entity is
prohibited from claiming in a taxable year as a result of this chapter may be
carried forward for use in any subsequent taxable year.

(e) An entity claiming a credit under
this chapter is not required to pay any additional retaliatory tax levied under
section 297I.05 as a result of claiming that credit.In addition, it is the intent of this section
that an entity claiming a credit under this chapter is not required to pay any
additional tax that may arise as a result of claiming that credit.

Sec. 4.[116X.04]
TRANSFERABILITY.

No tax credit claimed under this
chapter is refundable or saleable on the open market.However, a participating investor may
transfer credits to an affiliated insurance company, if it notifies the
department in writing.Tax credits
earned by a partnership, limited liability company, S corporation, or other
"pass-through" entity may be allocated to the partners, members, or
shareholders of the entity for their direct use in accordance with the
provisions of any agreement among those partners, members, or shareholders.Any allocation of tax credits made to a
partner, member, or shareholder in accordance with this section is not
considered a sale of such tax credits for purposes of this chapter.

Sec. 5.[116X.05]
CERTIFICATION OF QUALIFIED EQUITY INVESTMENTS.

Subdivision 1.Application.A qualified community development
entity that seeks to have an equity investment or long-term debt security
designated as a qualified equity investment and eligible for tax credits under
this chapter may apply to the department on or after January 1, 2017.The application must include the following:

(1) evidence of the applicant's
certification as a qualified community development entity, including evidence
of the service area of the entity that includes Minnesota;

(2) a copy of the allocation agreement
executed by the applicant, or its controlling entity, and the Community
Development Financial Institutions Fund under section 116X.02, subdivision 10;

(3) a certificate executed by an
executive officer of the applicant attesting that the allocation agreement
remains in effect and has not been revoked or canceled by the Community
Development Financial Institutions Fund;

(4) a description of the proposed
amount, structure, and initial purchaser of the qualified equity investment;

(5) the minimum amount of the qualified
equity investment the qualified community development entity is willing to
accept if the amount proposed to be certified under clause (4) is less than the
applicant's proposed amount of qualified equity investment;

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1138

(6) a plan describing the
proposed investment of the proceeds of the qualified equity investment,
including the types of qualified active low-income community businesses in
which the applicant expects to invest.Applicants
are not required to identify qualified active low-income community businesses
in which they will invest when submitting an application;

(7) a nonrefundable application fee of
$5,000.This fee must be paid to the
department and is required for each application submitted; and

(8) the refundable performance fee
required by section 116X.08.

Subd. 2.Consideration
of application.Within 30
days after receipt of a completed application containing the information in
subdivision 1, including the payment of the application fee and the refundable
performance fee, the department shall grant or deny the application in full or
in part.If the department denies any
part of the application, it shall inform the qualified community development
entity of the grounds for the denial.If
the qualified community development entity provides any additional information
required by the department or otherwise completes its application within 15
days of the notice of denial, the application is considered completed as of the
original date of submission.If the
qualified community development entity fails to provide the information or
complete its application within the 15-day period, the application remains
denied and must be resubmitted in full with a new submission date.

Subd. 3.Certification.If the application required under this
section is complete, the department shall certify the proposed equity
investment or long-term debt security as a qualified equity investment that is
eligible for tax credits under this chapter, subject to the limitations in
subdivision 5.The department shall
provide written notice of the certification to the qualified community
development entity.The notice must
include the name of the initial purchaser of the qualified equity investment
and the credit amount.Before any tax
credits are claimed under this chapter, the qualified community development
entity shall provide written notice to the department of the names of the
entities eligible to claim the credits as a result of holding a qualified
equity investment.If the names of the
entities that are eligible to utilize the credits change due to a transfer of a
qualified equity investment or an allocation or affiliate transfer pursuant to
section 116X.04, the qualified community development entity shall notify the
department of the change.

Subd. 4.Amount
certified.The department
shall certify $250,000,000 in qualified equity investments.The department shall certify qualified equity
investments in the order applications are received by the department.Applications received on the same day are
deemed to have been received simultaneously.For applications that are complete and received on the same day, the
department shall certify, consistent with remaining qualified equity investment
capacity, the qualified equity investments in proportionate percentages based
upon the ratio of the amount of qualified equity investment requested in an
application to the total amount of qualified equity investments requested in
all applications received on the same day.If any amount of qualified equity investment that would be certified
under this section is less than the acceptable minimum amount specified in the
application as required by subdivision 1, clause (5), the application is deemed
withdrawn and the amount of qualified equity investment is proportionately
allocated among the other applicants pursuant to this subdivision.

Subd. 5.Transfer
of authority.An approved
applicant may transfer all or a portion of its certified qualified equity
investment authority to its controlling entity or any subsidiary qualified
community development entity of the controlling entity, if the applicant
provides the information required in the application with respect to the
transferee and the applicant notifies the department of the transfer within 30
days of the transfer.

Subd. 6.Cash
investment.Within 60 days of
the applicant receiving notice of certification, the qualified community
development entity, or any transferee under subdivision 5, shall issue the
qualified equity investment and receive cash in the amount of the certified
amount.The qualified community
development entity or transferee under subdivision 5 must provide the
department with evidence of the receipt of the cash investment within ten

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1139

business days after receipt.If the qualified community development entity
or any transferee under subdivision 5 does not receive the cash investment and
issue the qualified equity investment within 60 days following receipt of the
certification notice, the certification lapses and the entity may not issue the
qualified equity investment without reapplying to the department for
certification.Lapsed certifications
revert back to the department and must be reissued, first, pro rata to other
applicants whose qualified equity investment allocations were reduced under
subdivision 4 and, thereafter, in accordance with the application process.

Sec. 6.[116X.06]
DISALLOWANCE OF TAX CREDITS AND PENALTIES.

(a) The department shall disallow the
utilization of any tax credits earned as a result of holding a qualified equity
investment, but not yet claimed, if:

(1) the issuer redeems or makes
principal repayment with respect to a qualified equity investment prior to the
seventh anniversary of the issuance of the qualified equity investment.In this case, the department's disallowance
of unclaimed tax credits are proportionate to the amount of the redemption or
repayment with respect to the qualified equity investment;

(2) the issuer fails to invest an amount
equal to 100 percent of the purchase price of the qualified equity investment
in qualified low-income community investments in Minnesota within 12 months of
the issuance of the qualified equity investment and maintain at least 100
percent of the level of investment in qualified low-income community
investments in Minnesota until the last credit allowance date for the qualified
equity investment.For purposes of this
section, an investment is considered held by an issuer even if the investment
has been sold or repaid if the issuer reinvests an amount equal to the capital
returned to or recovered by the issuer from the original investment, exclusive
of any profits realized, in another qualified low-income community investment
within 12 months of the receipt of the capital.An issuer is not required to reinvest capital returned from qualified
low-income community investments after the sixth anniversary of the issuance of
the qualified equity investment, if proceeds were used to make the qualified
low-income community investment, and the qualified low-income community
investment is considered to be held by the issuer through the seventh
anniversary of the qualified equity investment's issuance; or

(3) there is any violation of section
116X.10.

(b) Notwithstanding any contrary
provision, any tax credit already claimed under this chapter is not subject to
recapture upon the occurrence of an event set forth in paragraph (a), clause
(1) or (2).

(c) If the department disallows the
utilization of tax credits under this section, it may also, at its discretion,
impose penalties on the qualified community development entity that issued the
qualified equity investment for which tax credits are disallowed, not to exceed
the amount of the refundable performance fee required under section 116X.08 and
without regard to whether the fee has been refunded to the qualified community
development entity.

Sec. 7.[116X.07]
NOTICE OF NONCOMPLIANCE.

Enforcement of each of the disallowance
and penalty provisions is subject to a six-month cure period.No disallowance or penalty may be imposed
until the qualified community development entity has been given notice of
noncompliance and afforded six months from the date of the notice to cure the
noncompliance.

Sec. 8.[116X.08]
REFUNDABLE PERFORMANCE FEE.

Subdivision 1.Performance
guarantee amount.A qualified
community development entity that seeks to have an equity investment or
long-term debt security designated as a qualified equity investment and
eligible for tax credits under this section shall pay a refundable performance
fee to the department for deposit in the new markets performance guarantee
account, which is hereby established.The
following amounts are forfeited to the department:

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(1)
the performance fee in its entirety if the qualified community development
entity and its subsidiary qualified community development entities fail to
issue the total amount of qualified equity investments certified by the
department and receive cash in the total amount certified under section
116X.05, subdivision 3; or

(2) the amount of the performance fee
equal to the product of the original amount of the refundable performance fee
multiplied by the percentage of the remaining amount of the proceeds of the
qualified equity investment not used to make qualified low-income equity
investments if the qualified community development entity or any subsidiary
qualified community development entity that issues a qualified equity
investment certified under this section fails to meet the investment
requirement under section 116X.06 by the second credit allowance date of the
qualified equity investment.Forfeiture
of the fee or any portion thereof under this paragraph is subject to the
six-month cure period established under section 116X.07.

Subd. 2.Request
for refund.The fee required
under subdivision 1 must be paid to the department and held in the new markets
performance guarantee account until compliance with subdivision 1 is
established.The qualified community
development entity may request a refund of the fee from the department no
sooner than 30 days after it meets all the requirements of subdivision 1.The department has 30 days to comply with the
request or give notice of noncompliance.

Sec. 9.[116X.09]
PREAPPROVAL OF INVESTMENTS.

Before making a proposed qualified
low-income community investment, a qualified community development entity may
request from the department a written determination that the proposed
investment will qualify as a qualified low-income community investment and will
satisfy all applicable provisions of this chapter.The department must notify a qualified
community development entity within ten business days from the receipt of a
request of its determination and an explanation thereof.Any determination made by the department
pursuant to this section is binding on the department.

Sec. 10.[116X.10]
USE OF PROCEEDS PROHIBITED.

A qualified active low-income community
business that receives a qualified low-income community investment under this
chapter, or any affiliates of a qualified active low-income community business,
may not directly or indirectly use the proceeds of the qualified active
low-income community investment to lend to or invest in a qualified community development
entity or member or affiliate of a qualified community development entity where
the proceeds of the loan or investment are directly or indirectly used to fund
or refinance the purchase of a qualified equity investment under this chapter.

With the recommendation that when so
amended the bill be re-referred to the Committee on Taxes.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

H. F. No. 446, A bill for
an act relating to family law; allowing allocation of income tax dependency
exemptions in child support matters; amending Minnesota Statutes 2014, section
518A.38, by adding a subdivision.

Reported the same back with the following
amendments:

Page 2, line 15, delete "reasonable"
and after the second "and" insert "reasonable attorney"

(a) A child support work group is
established to review the parenting expense adjustment in Minnesota Statutes,
section 518A.36, and to identify and recommend changes to the parenting expense
adjustment.

(b) Members of the work group shall
include:

(1) two members of the house of
representatives, one appointed by the speaker of the house and one appointed by
the minority leader;

(2) two members of the senate, one
appointed by the majority leader and one appointed by the minority leader;

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1142

(3) the commissioner of human
services or a designee;

(4) one staff member from the Child
Support Division of the Department of Human Services, appointed by the
commissioner;

(5) one representative of the Minnesota
State Bar Association, Family Law section, appointed by the section;

(6) one representative of the Minnesota
County Attorney's Association, appointed by the association;

(7) one representative of the Minnesota
Legal Services Coalition, appointed by the coalition;

(8) one representative of the Minnesota
Family Support and Recovery Council, appointed by the council; and

(9) two representatives from parent
advocacy groups, one representing custodial parents and one representing
noncustodial parents, appointed by the commissioner of human services.

The commissioner, or the commissioner's designee, shall
appoint the work group chair.

(c) The work group shall be authorized
to retain the services of an economist to help create an equitable parenting expense
adjustment formula.The work group may
hire an economist by use of a sole-source contract.

(d) The work group shall issue a report
to the chairs and ranking minority members of the legislative committees with
jurisdiction over civil law, judiciary, and health and human services by
January 15, 2016.The report must
include recommendations for changes to the computation of child support and
recommendations on the composition of a permanent child support task force.

(e) Terms, compensation, and removal of
members and the filling of vacancies are governed by Minnesota Statutes,
section 15.059.

(f) The work group expires January 16,
2016.

Sec. 2.CHILD
SUPPORT WORK GROUP.

$....... in fiscal year 2016 is
appropriated from the general fund to the commissioner of human services for
facilitation of the duties of the child support work group."

Delete the title and insert:

"A bill for an act relating to family
law; establishing a child support work group; appropriating money."

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

Page 2, line 5, after the period, insert
"The following unorganized territories in St. Louis County qualify
for allocations under this paragraph:

(1) 56-17;

(2) 58-22;

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1144

(3) 59-16;

(4) 59-21;

(5) 60-18; and

(6) 60-19.

Allocations to an unorganized territory must be based on
the production of the taconite mine pit nearest to that unorganized territory,
provided that the total allocation based on production of that taconite mining
pit must be increased in an amount sufficient to prevent the allocation for an
unorganized territory from reducing the allocation to any other municipality.Allocations for an unorganized territory are
made to the county, which must use the amount allocated for public
infrastructure for the unorganized territory."

"EFFECTIVE
DATE.This section is
effective beginning with the 2016 distribution."

With the recommendation that when so
amended the bill be re-referred to the Committee on Taxes.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

H. F. No. 722, A bill for
an act relating to public safety; clarifying and delimiting the authority of
public officials to disarm individuals at any time; proposing coding for new
law in Minnesota Statutes, chapter 624.

Reported the same back with the
recommendation that the bill be placed on the General Register.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

Subd. 9.Voice-over-Internet
protocol service."Voice-over-Internet
protocol service" or "VoIP service" means any service that (1)
enables real-time two-way voice communications that originate from or terminate
at the user's location in Internet protocol or any successor protocol, and (2)
permits users generally to receive calls that originate on the public switched
telephone network and terminate calls to the public switched telephone network.

Subd. 10.Internet
protocol-enabled service."Internet
protocol-enabled service" or "IP-enabled service" means any
service, capability, functionality, or application provided using Internet
protocol, or any successor protocol, that enables an end user to send or
receive a communication in Internet protocol format or any successor format,
regardless of whether that communication is voice, data, or video.

Subdivision 1.Regulation
prohibited.Except as
provided in this section, no state agency, including the commission and the
Department of Commerce, or political subdivision of this state shall by rule,
order, or other means directly or indirectly regulate the entry, rates, terms,
quality of service, availability, classification, or any other aspect of VoIP
service or IP-enabled service.

Subd. 2.VoIP
regulation.(a) To the extent
permitted by federal law, VoIP service is subject to the requirements of
sections 237.49, 237.52, 237.70, and 403.11 with regard to the collection and
remittance of the surcharges governed by those sections.

(b) A service provider required by
state or federal law to provide 911 service must comply with all the
requirements of chapter 403 regarding the provision of 911 service by a service
provider.

Subd. 3.Relation
to other law.Nothing in this
section restricts, creates, expands, or otherwise affects or modifies:

(1) the commission's authority under
the Federal Communications Act of 1934, United States Code, title 47, sections
251 and 252;

(2) any applicable wholesale tariff or
any commission authority related to wholesale services;

(3) any commission jurisdiction over
(i) intrastate switched access rates, terms, and conditions, including the
implementation of federal law with respect to intercarrier compensation, or
(ii) existing commission authority to address or affect the resolution of
disputes regarding intercarrier compensation;

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(4)
the rights of any entity, or the authority of the commission and local
government authorities, with respect to the use and regulation of public
rights-of-way under sections 237.162 and 237.163; or

(5) the establishment or enforcement of
standards, requirements or procedures in procurement policies, internal
operational policies, or work rules of any state agency or political
subdivision of the state relating to the protection of individual property.

Subd. 4.Exemption.The following services delivered by
IP-enabled service are not regulated under this chapter:

With the recommendation that when so
amended the bill be re-referred to the Committee on Job Growth and Energy
Affordability Policy and Finance.

The report was adopted.

Mack from the
Committee on Health and Human Services Reform to which was referred:

H. F. No. 780, A bill for
an act relating to taxation; individual income; providing a tax credit for
modification or improvements to homes of people with disabilities;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 290.

Subdivision 1.Definitions.(a) For purposes of this section, the
following terms have the meanings given, unless the context clearly requires
otherwise.

(b) "Accommodate" means to
make a residence accessible for a qualified person in a manner that is
necessary because the qualified person has a disability or that is necessary
because the qualified person is 65 or older and has a disability or another
physical limit.

(c) "Federal poverty guidelines"
means the federal poverty guidelines published by the United States Department
of Health and Human Services most recently before the first day of the calendar
year in which the taxable year began.

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1147

(e) "Qualified modifications or
improvements" means modifications or improvements to the taxpayer's
principal residence, as used in section 121 of the Internal Revenue Code and
located in this state, to accommodate a qualified person and must:

(1) consist of one or more of the
following:

(i) no-step exterior entrances;

(ii) exterior or interior ramps;

(iii) stairway lifts;

(iv) elevators;

(v) lifts;

(vi) handrails;

(vii) grab bars or reinforcement of
grab bars;

(viii) door hardware;

(ix) widening exterior doors to more
than 36 inches;

(x) widening interior doors to more
than 32 inches;

(xi) widening hallways to more than 36
inches;

(xii) fire or smoke alarms;

(xiii) alerting devices;

(xiv) moving electrical service
including, but not limited to, outlets and switches;

(xviii) bedroom modifications
including, but not limited to, relocation to an accessible space in the home;

(2) be certified by a medical provider
as necessary to accommodate the qualified person's use of the residence;

(3) consist of improvements to real
property following their installation; and

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1148

(4) not be the construction of
a new residence or an addition to a residence that expands its living area
beyond the items in clause (1).

(f) "Qualified person" means
a taxpayer, the taxpayer's spouse, or the taxpayer's dependent, as defined in
section 152 of the Internal Revenue Code, who has attained the age of 65 before
the close of the taxable year or who has a disability, as defined in Minnesota
Statutes, section 363A.03, subdivision 12.

Subd. 2.Grants;
eligibility.The commissioner
of housing finance shall provide grants to qualified persons for qualified
modifications and improvements to accommodate their home.The grants shall be available to homeowners
whose annual income is less than 450 percent of the federal poverty guidelines.The homeowner must provide documentation from
a medical provider that modifications and improvements are necessary to
accommodate the qualified person.

Subd. 3.Appropriation.$2,000,000 in fiscal year 2016 and
$2,000,000 in fiscal year 2017 are appropriated from the general fund to the
commissioner of the Housing Finance Agency for grants pursuant to this section
to homeowners to accommodate qualified persons who need qualified modifications
or improvements to their homes due to age or disability.A percentage of this amount may be used by
the Housing Finance Agency for the administration of the grants program."

Delete the title and insert:

"A
bill for an act relating to housing; providing grants for home modifications
for accessibility; appropriating money."

With the recommendation that when so
amended the bill be re-referred to the Committee on Job Growth and Energy
Affordability Policy and Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 782, A bill for
an act relating to local governments; providing for reverse referendum approval
of certain issuance of debt; proposing coding for new law in Minnesota
Statutes, chapter 416.

Reported the same back with the
recommendation that the bill be re-referred to the Property Tax and Local
Government Finance Division.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 805, A bill for
an act relating to public safety; establishing a working group to study and
make recommendations on establishing a Silver Alert system; requiring a report.

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Public Safety
and Crime Prevention Policy and Finance.

The report was adopted.

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1149

Sanders from the Committee on
Government Operations and Elections Policy to which was referred:

H. F. No. 827, A bill for an
act relating to children; extending the Task Force on the Protection of
Children.

Reported the same back with the following
amendments:

Delete everything after the enacting clause
and insert:

"Section 1.LEGISLATIVE
TASK FORCE; CHILD PROTECTION.

(a) A legislative task force is created
to:

(1) review the efforts being made to
implement the recommendations of the Governor's Task Force on the Protection of
Children;

(2) expand the efforts into related
areas of the child welfare system; and

(3) identify additional areas within the
child welfare system that need to be addressed by the legislature.

(b) The four legislative members of the
governor's task force shall be the members of the legislative task force.They may appoint up to eight legislators as
ex officio members of the task force.

(c) The task force may provide oversight
and monitoring of:

(1) the efforts by the Department of
Human Services, counties, and tribes to implement laws related to child
protection;

(2) efforts by the Department of Human
Services, counties, and tribes to implement the recommendations of the
Governor's Task Force on the Protection of Children;

(3) efforts by agencies, including but
not limited to, the Minnesota Department of Education, the Minnesota Housing
Finance Agency, the Minnesota Department of Corrections, and the Minnesota
Department of Public Safety, to work with the Department of Human Services to assure
safety and well-being for children at risk of harm or children in the child
welfare system;

(4) efforts by the Department of Human
Services, other agencies, counties, and tribes to implement best practices to
ensure every child is protected from maltreatment and neglect and to ensure
every child has the opportunity for healthy development.

(d) The task force, in cooperation with
the commissioner of human services, shall issue a report to the legislature and
governor on February 1, 2016.The report
must contain information on the progress toward implementation of changes to
the child protection system, recommendations for additional legislative
changes, and procedures affecting child protection and child welfare; and
funding needs to implement recommended changes.

(e) The task force shall convene upon
enactment of this act and shall continue until the last day of the 2016
legislative session."

Amend the title as follows:

Page 1, line 2, delete everything after the
semicolon and insert "establishing a legislative task force on child
protection."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

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1150

Scott from the Committee on
Civil Law and Data Practices to which was referred:

"(f) After imposing a penalty under
this subdivision, a person has 30 days from receipt of the notice of the
penalty to notify the commissioner in writing that the person intends to
contest the penalty through a hearing.The
hearing request must specifically identify the penalty being contested and
state the grounds for contesting it.If
the person fails to notify the commissioner that the person intends to contest
the penalty, the penalty is final and is not subject to further judicial or
administrative review.If a person
notifies the commissioner that the person intends to contest a penalty issued
under this subdivision, the Office of Administrative Hearings shall conduct a
hearing in accordance with the applicable provisions of chapter 14 for hearings
in contested cases."

Page 3, delete lines 10 and 11

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

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1151

Nornes from the Committee on
Higher Education Policy and Finance to which was referred:

(1) a specific type of gambling equipment
sold on an exclusive basis is at issue;

(2) the manufacturer does not sell
gambling equipment to any distributor in Minnesota;

(3) a Minnesota statute or rule prohibits
the sale; or

Journal of the House - 32nd Day -
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1152

(4) the distributor is
delinquent on any payment owed to the manufacturer.

This subdivision does not apply to
application software and those computer programs used by a licensed
manufacturer in the production, play, and reporting of board-approved
electronic pull-tab games or electronic bingo games.

EFFECTIVE
DATE.This section is
effective July 1, 2015."

Page 3, line 19, after "returned"
insert "defective"

Page 5, line 1, delete the new language

Page 7, line 16, after "effective"
insert "the day following final enactment"

Page 8, line 3, strike "When required
by the board,"

Page 8, line 4, after "file" insert
", by the 20th of each month," and after "director"
insert "a list of all gambling equipment that"

Subdivision 1.Notice
of sale; publication.(a) For
purposes of this chapter, publication of the notice of sale shall be sufficient
if it occurs:

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1153

(1) in a qualified newspaper
having its known office of issue located in the county where the mortgaged
premises, or some part thereof, are located; or

(2) in a qualified newspaper having its
known office of issue located in an adjoining county and the publisher of the
newspaper in the sworn affidavit of publication required by section 331A.07
states that a substantial portion of the newspaper's circulation is in the
county where the mortgaged premises, or some part thereof, are located.

(b) In both cases, the affidavit of
publication shall also state the city and county where the newspaper's known
office of issue is located, and that the newspaper complies with the conditions
described in clause (1) or (2).

Subd. 2.Definitions.As used in this section, "known
office of issue" is defined as provided in section 331A.01, subdivision 2,
and "qualified newspaper" is defined as provided in section 331A.01,
subdivision 8.

Sec. 2.Minnesota Statutes 2014, section 582.25, is
amended to read:

582.25
MORTGAGES; VALIDATING FORECLOSURE SALES.

Every mortgage foreclosure sale by
advertisement in this state under power of sale contained in any mortgage duly
executed and recorded in the office of the county recorder or registered with
the registrar of titles of the proper county of this state, together with the
record of such foreclosure sale, is, after expiration of the period specified
in section 582.27, hereby legalized and made valid and effective to all intents
and purposes, as against any or all of the following objections:

(1) that the power of attorney, recorded
or filed in the proper office provided for by section 580.05:

(i) did not definitely describe and
identify the mortgage;

(ii) did not definitely describe and
identify the mortgage, but instead described another mortgage between the same
parties;

(iii) did not have the corporate seal
affixed thereto, if executed by a corporation;

(iv) had not been executed and recorded or
filed prior to sale, or had been executed prior to, but not recorded or filed
until after such sale;

(v) was executed subsequent to the date of
the printed notice of sale or subsequent to the date of the first publication
of such notice;

(2) that no power of attorney to foreclose
such mortgage as provided in section 580.05, was ever given, or recorded, or
registered;

(3) that the notice of sale:

(i) was published only three, four or five
times, or that it was published six times but not for six weeks prior to the
date of sale;

(ii) properly described the property to be
sold in one or more of the publications thereof but failed to do so in the
other publications thereof, the correct description having been contained in
the copy of said notice served on the occupant of the premises;

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1154

(iii) correctly stated the date
of the month and hour and place of sale but named a day of the week which did
not fall on the date given for such sale, or failed to state or state correctly
the year of such sale;

(iv) correctly described the real estate
but omitted the county and state in which said real estate is located;

(v) correctly described the land by
government subdivision, township and range, but described it as being in a
county other than that in which said mortgage foreclosure proceedings were
pending, and other than that in which said government subdivision was actually
located;

(vi) did not state the amount due or failed
to state the correct amount due or claimed to be due;

(vii) incorrectly stated the municipal
status of the place where the sale was to occur;

(viii) in one or more of the publications
thereof, or in the notice served on the occupant or occupants designated either
a place or a time of sale other than that stated in the certificate of sale;

(ix) failed to state the names of one or
more of the assignees of the mortgage and described the subscriber thereof as
mortgagee instead of assignee;

(x) failed to state or incorrectly stated
the name of the mortgagor, the mortgagee, or assignee of mortgagee;

(xi) was not served upon persons whose
possession of the mortgaged premises was otherwise than by their personal
presence thereon, if a return or affidavit was recorded or filed as a part of
the foreclosure record that at a date at least four weeks prior to the sale the
mortgaged premises were vacant and unoccupied;

(xii) was not served upon all of the
parties in possession of the mortgaged premises, provided it was served upon
one or more of such parties;

(xiii) was not served upon the persons in
possession of the mortgaged premises, if, at least two weeks before the sale
was actually made, a copy of the notice was served upon the owner in the manner
provided by law for service upon the occupants, or the owner received actual
notice of the proposed sale;

(xiv) gave the correct description at
length, and an incorrect description by abbreviation or figures set off by the
parentheses, or vice versa;

(xv) was served personally upon the
occupants of the premises as such, but said service was less than four weeks
prior to the appointed time of sale;

(xvi) did not state the original principal
amount secured, or failed to state the correct original principal amount
secured;

(4) that distinct and separate parcels of
land were sold together as one parcel and to one bidder for one bid for the
whole as one parcel;

(5) that no authenticated copy of the order
appointing, or letters issued to a foreign representative of the estate of the
mortgagee or assignee, was properly filed or recorded, provided such order or
letters have been filed or recorded in the proper office prior to one year
after the last day of the redemption period of the mortgagor, the mortgagor's
personal representatives or assigns;

(6) that a holder of a mortgage was a
representative appointed by a court of competent jurisdiction in another state
or county in which before the foreclosure sale an authenticated copy of the
representative's letters or other record of authority were filed for record in
the office of the county recorder of the proper county but no certificate was
filed and recorded therewith showing that said letters or other record of
authority were still in force;

Journal of the House - 32nd Day -
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1155

(7)(i) that said mortgage was
assigned by a decree of a court exercising probate jurisdiction in which decree
the mortgage was not specifically or sufficiently described;

(ii) that the mortgage foreclosed had been
assigned by the final decree of the court exercising probate jurisdiction to
the heirs, devisees, or legatees of the deceased mortgagee, or the mortgagee's
assigns, and subsequent thereto and before the representative of the estate had
been discharged by order of the court, the representative had assigned the
mortgage to one of the heirs, devisees, or legatees named in such final decree,
and such assignment placed on record and the foreclosure proceedings conducted
in the name of such assignee and without any assignment of the mortgage from
the heirs, devisees, or legatees named in such final decree, and the mortgaged
premises bid in at the sale by such assignee, and the sheriff's certificate of
sale, with accompanying affidavits recorded in the office of the county
recorder of the proper county;

(iii) that a mortgage owned by joint
tenants or tenants in common was foreclosed by only one tenant;

(8) that the sheriff's certificate of sale
or the accompanying affidavits and return of service were not executed, filed
or recorded within 20 days after the date of sale, but have been executed and
filed or recorded prior to the last day of the redemption period of the
mortgagor, the mortgagor's personal representatives or assigns;

(9) that the year, or the month, or the
day, or the hour of the sale is omitted or incorrectly or insufficiently stated
in the notice of sale or the sheriff's certificate of sale;

(10)(i) that prior to the foreclosure no
registration tax was paid on the mortgage, provided such tax had been paid
prior to one year after the last day of the redemption period of the mortgagor,
the mortgagor's personal representatives or assigns;

(ii) that an insufficient registration tax
has been paid on the mortgage;

(11) that the date of the mortgage or any
assignment thereof or the date, the month, the day, hour, book, and page, or
document number of the record or filing of the mortgage or any assignment
thereof, in the office of the county recorder or registrar of titles is omitted
or incorrectly or insufficiently stated in the notice of sale or in any of the
foreclosure papers, affidavits or instruments;

(12) that the notice of mortgage
foreclosure sale or sheriff's certificate of sale designated the place of sale
as the office of a county official located
in the court house of the county when such office was not located in such court
house;

(13) that no notice of the pendency of the
proceedings to enforce or foreclose the mortgage as provided in section 508.57,
was filed with the registrar of titles or no memorial thereof was entered on
the register at the time of or prior to the commencement of such proceedings;
or that when required by section 508.57, the notice of mortgage foreclosure
sale failed to state the fact of registration;

(14) that the power of attorney to
foreclose or the notice of sale was signed by the person who was the
representative of an estate, but failed to state or correctly state the
person's representative capacity;

(15) that the complete description of the
property foreclosed was not set forth in the sheriff's certificate of sale, if
said certificate correctly refers to the mortgage by book and page numbers or
document number and date of filing and the premises are accurately described in
the printed notice of sale annexed to said foreclosure sale record containing
said sheriff's certificate of sale;

(16) that the date of recording of the
mortgage was improperly stated in the sheriff's certificate of mortgage
foreclosure sale, the mortgage being otherwise properly described in said
sheriff's certificate of mortgage foreclosure sale and said certificate of
mortgage foreclosure sale further referring to the printed notice of mortgage
foreclosure sale attached to said sheriff's certificate of mortgage foreclosure
sale in which printed notice the mortgage and its recording was properly
described;

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1156

(17) that prior to the first
publication of the notice of sale in foreclosure of a mortgage by
advertisement, an action or proceeding had been instituted for the foreclosure
of said mortgage or the recovery of the debt secured thereby and such action or
proceeding had not been discontinued;

(18) that at the time and place of sale the
sheriff considered and accepted a bid submitted prior to the date of the sale
by the owner of the mortgage and sold the mortgaged premises for the amount of
such bid, no other bid having been submitted, and no one representing the owner
of the mortgage being present at the time and place of sale;

(19) that such sale was postponed by the
sheriff to a date or time subsequent to the one specified in the notice of sale
but there was no publication or posting of a notice of such postponement;

(20) that there was not recorded with
letters or other record of authority issued to a representative appointed by a
court of competent jurisdiction in another state or county, a certificate that
said letters or other record of authority were still in force and effect;

(21) that the sheriff's affidavit of sale
correctly stated in words the sum for which said premises were bid in and purchased by the mortgagee, but incorrectly stated
the same in figures immediately following the correct amount in words;

(22) that the notice of pendency of the
foreclosure as required by section 580.032 was not filed for record before the
first date of publication of the foreclosure notice, but was filed before the
date of sale; and

(23) that the servicer did not comply with
the requirements of section 582.043; and

(24) that the publication of the notice
of sale did not comply with section 580.033.

Sec. 3.EFFECTIVE
DATE.

Sections 1 and 2 are effective July 1,
2015."

Correct the title numbers accordingly

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Mack from the
Committee on Health and Human Services Reform to which was referred:

H. F. No. 973, A bill for an
act relating to human services; appropriating money for the collaboration of
community services partners demonstration project.

Reported the same back with the following
amendments:

Delete everything after the enacting clause
and insert:

"Section 1.HOME
AND COMMUNITY-BASED SERVICES INCENTIVE POOL.

The commissioner of human services shall
develop an initiative to provide incentives for innovation in achieving
integrated competitive employment, living in the most integrated setting, and
other outcomes determined by the commissioner.The commissioner shall seek requests for proposals and shall contract
with one or more entities to provide incentive payments for meeting identified
outcomes.The initial requests for
proposals must be issued by October 1, 2015."

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1157

Delete the title and insert:

"A bill for an act relating to human
services; directing the commissioner of human services to develop a home and
community-based services incentive pool."

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Health and
Human Services Finance.

The report was adopted.

Mack from the
Committee on Health and Human Services Reform to which was referred:

H. F. No. 1009, A bill for
an act relating to human services; setting minimum reimbursement rates under
medical assistance for public health nurse home visits; appropriating money for
nurse-family partnership programs; proposing coding for new law in Minnesota
Statutes, chapter 256B.

Reported the same back with the following
amendments:

Page 1, line 11, delete "that are
evidence-based, intensive, long-term, and" and insert "administered
by home visiting programs that meet the United States Department of Health and
Human Services criteria for evidence-based models and are identified by the
commissioner of health as eligible to be implemented under the Maternal,
Infant, and Early Childhood Home Visiting program.Home visits shall be"

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Finance.

The report was adopted.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page 1158

Garofalo
from the Committee on Job Growth and Energy Affordability Policy and Finance to
which was referred:

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1056, A bill for
an act relating to public safety; establishing a grant program to assist local
law enforcement agencies to develop or expand lifesaver programs that locate
lost or wandering persons who are mentally impaired; authorizing rulemaking;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 299C.

Reported the same back with the following
amendments:

Page 2, line 7, after "award"
insert ", on a first-come, first-served basis,"

Page 2, line 8, delete everything after
the period

Page 2, delete lines 9 and 10

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Reform.

The report was adopted.

Hoppe from the
Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 1066, A bill for
an act relating to telecommunications; providing for competitive market
regulation for certain local exchange carriers; proposing coding for new law in
Minnesota Statutes, chapter 237.

Reported the same back with the following
amendments:

Journal
of the House - 32nd Day - Monday, March 23, 2015 - Top of Page
1159

Delete everything after the
enacting clause and insert:

"Section 1.[237.025]
COMPETITIVE MARKET REGULATION.

Subdivision 1.Definitions.(a) "Competitive service
provider" means a provider of local residential voice service who owns a
substantial proportion of the last-mile or loop facilities delivering the
service in an exchange service area, without regard to the technology used to deliver
the service."Competitive service
provider" includes, but is not limited to, a wireless or Voice over
Internet Protocol provider who offers service to a majority of households in an
exchange service area with the wireless provider's own facilities and the
remainder by roaming through another wireless carrier's facilities, but does
not include:

(3) competitive local exchange carriers
who do not who own a substantial proportion of the last-mile or loop facilities
over which they provide local residential voice service; or

(4) over-the-top VOIP providers.

(b) "Exchange service area"
has the meaning given in Minnesota Rules, part 7810.0100, subpart 15.

(c) "Over-the-top VOIP
provider" means a VOIP provider that has no business relationship with the
provider of the Internet connection used by the VOIP provider to deliver voice
service.

(d) "VOIP" or "Voice
over Internet Protocol" means any service that:

(1) enables real-time two-way voice
communications that originate from or terminate at the user's location in
Internet protocol or any successor protocol; and

(2) permits users to receive calls that
originate on the public switched telephone network and terminate calls to the
public switched telephone network.

Subd. 2.Petition.(a) A local exchange carrier may
petition the commission to be regulated under this section in any exchange
service area in which the carrier provides local exchange service.The petition must be served on the
commission, the department, the Office of the Attorney General, and any other
person designated by the commission.

(b) A petition filed under this
subdivision must include:

(1) a list of exchange service areas in
which the local exchange carrier is seeking to be regulated under this section;

(2) the local services offered by the
local exchange carrier in each exchange service area;

(3) a list of alternative providers of
local services in each exchange service area;

(4) a description of affiliate
relationships the petitioning local exchange carrier has with any other
provider of local service in each exchange service area;

Journal of the House - 32nd Day -
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1160

(5) documentation demonstrating
the loss of local residential voice customers in each local calling area over,
at a minimum, the previous five years;

(6) evidence demonstrating that the
local exchange carrier satisfies the competitive criteria in subdivision 4 in
each exchange service area; and

(7) other information requested by the
commission that is relevant to the applicable competitive criteria in
subdivision 4.

Subd. 3.Process;
objection; review.(a) A
petition by a local exchange carrier seeking to be regulated under this section
shall be reviewed by the commission as provided under this subdivision.

(b) A party objecting to a local
exchange carrier's petition must file an objection within 20 days.

(c) If no party objects to a
petitioning local exchange carrier's proposed election within 20 days of the
filing of the petition, the petition is deemed approved.

(d) If a party raises an objection to a
local exchange carrier's petition, the commission must provide interested
parties an opportunity to comment on the merits of the petition.

(e) The commission shall make a final
determination regarding the petition within 180 days of the date all
information required under subdivision 2 was submitted.

(f) In reviewing the petition, the
commission may request additional information from the petitioning local
exchange carrier and other service providers under the commission's
jurisdiction that provide service in the relevant exchange service area.

Subd. 4.Competitive
criteria.(a) If a
petitioning local exchange carrier demonstrates that it serves fewer than 50
percent of the households in an exchange service area, and at least 50 percent
of households in the exchange service area can choose voice service from at
least one additional competitive service provider, the commission shall approve
the petition.

(b) If a petitioning local exchange
carrier serves more than 50 percent of the households in an exchange service
area, the commission shall approve the petition if the petitioner demonstrates
that:

(1) at least 50 percent of households
in the exchange service area can choose voice service from at least one
additional competitive service provider;

(2) no significant economic,
technological, or other barriers to market entry and exit exist; and

(3) no single provider has the ability
to maintain prices above competitive levels for a significant period of time or
otherwise deter competition.

Subd. 5.Market
regulations.(a) A local
exchange carrier that has received approval from the commission to be regulated
under this section in one or more of its exchange service areas shall be
subject to regulation as a telecommunications carrier under section 237.035 and
as a competitive local exchange carrier in Minnesota Rules, parts 7811.2210 and
7812.2210, as applicable, in the approved exchange service areas.Regulation under this section is effective 30
days after a petition is approved by the commission under subdivision 4.

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1161

(b) If a local exchange carrier
receives commission approval to be regulated under this section, any existing
alternative form of plan, price, or service regulation terminates on the day
the regulation under this section becomes effective.

Subd. 6.Relation
to other law.Nothing in this
section affects or modifies:

(1)
any entity's obligations or rights, or the commission's authority, under the
Federal Communications Act of 1934, United States Code, title 47,
sections 251 and 252;

(2) any commission jurisdiction over:

(i) intrastate switched access rates,
terms, and conditions, including the implementation of federal law with respect
to intercarrier compensation; or

(ii) commission authority to address or
affect the resolution of disputes regarding intercarrier compensation; and

(3) the rights of any entity, or the
authority of the commission or local government authorities, with respect to
the use and regulation of public rights-of-way under sections 237.162 and
237.163.

Subd. 7.Reexamining
applicability of competitive criteria.The commission may, upon petition or on its own motion, open a
proceeding to examine whether the competitive criteria in subdivision 4
continue to be met in an exchange service area in which a local exchange
carrier previously received commission approval to be regulated under this
section.If the commission determines
that the competitive criteria are no longer met, it shall determine the
appropriate level of regulation for that provider in that exchange service
area.

EFFECTIVE
DATE.This section is
effective the day following final enactment."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

"(b) A person shall not race any
vehicle upon any street or highway of this state.Any person who willfully compares or contests
relative speeds by operating one or more vehicles is guilty of a misdemeanor,
whether or not the speed contested or compared is in excess of the maximum
speed prescribed by law."

Page 1, line 12, delete "(b)"
and insert "(c)" and before "and" insert
"or (b)," and delete the comma

Page 1, line 13, delete the comma and
after "another" insert a comma

Journal of the House - 32nd Day -
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1162

Page 1, line 14, delete "(c)"
and insert "(d)"

Page 2, after line 10, insert:

"Sec. 4.JACQUELYN
DEVNEY AND THOMAS CONSIDINE ROADWAY SAFETY ACT.

If 2015 H. F. No. 1085
is enacted, it may be cited as the Jacquelyn Devney and Thomas Considine
Roadway Safety Act."

Renumber the sections in sequence

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Hoppe from the
Committee on Commerce and Regulatory Reform to which was referred:

Subd. 3a.Brew
pub."Brew pub" is
a brewer who also holds one or more retail on-sale licenses and who
manufactures fewer than 3,500 barrels of malt liquor in a year, at any one
licensed premises, the entire production of which is solely for consumption on
tap on any licensed premises owned by the brewer, or for off-sale from those
licensed premises as permitted in section 340A.24, subdivision 2.

Sec. 2.Minnesota Statutes 2014, section 340A.22, is
amended to read:

340A.22
MICRODISTILLERIES.

Subdivision 1.Activities.(a) A microdistillery licensed under section
340A.301, subdivision 6c,this chapter may provide on its premises
samples of distilled spirits manufactured on its premises, in an amount not to
exceed 15 milliliters per variety per person.No more than 45 milliliters may be sampled under this paragraph by any
person on any day.

(b) A microdistillery can sell cocktails
to the public, pursuant to subdivision 2.

Subd. 2.Cocktail
room license.(a) A municipality,
including a city with a municipal liquor store, may issue the holder of a
microdistillery license under section 340A.301, subdivision 6c,this
chapter a microdistillery cocktail room license.A microdistillery cocktail room license
authorizes on-sale of distilled liquor produced by the distiller for
consumption on the premises of or adjacent to one distillery location owned by
the distiller.Nothing in this

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1163

subdivision precludes the
holder of a microdistillery cocktail room license from also holding a license
to operate a restaurant at the distillery.Section 340A.409 shall apply to a license issued under this subdivision.All provisions of this chapter that apply to
a retail liquor license shall apply to a license issued under this subdivision
unless the provision is explicitly inconsistent with this subdivision.

(b) A distiller may only have one cocktail
room license under this subdivision, and may not have an ownership interest in
a distillery licensed under section 340A.301, subdivision 6, paragraph (a).

(d) A municipality shall, within ten days
of the issuance of a license under this subdivision, inform the commissioner of
the licensee's name and address and trade name, and the effective date and
expiration date of the license.The
municipality shall also inform the commissioner of a license transfer,
cancellation, suspension, or revocation during the license period.

(e) No single entity may hold both a
cocktail room and taproom license, and a cocktail room and taproom may not be
co-located.

Subd. 3.License;
fee.The commissioner shall
establish a fee for licensing microdistilleries that adequately covers the cost
of issuing the license and other inspection requirements.The fees shall be deposited in an account in
the special revenue fund and are appropriated to the commissioner for the
purposes of this subdivision.All other
requirements of section 340A.301 apply to a license under this section.

Sec. 3.[340A.24]
BREW PUBS.

Subdivision 1.On-sale
license.A brew pub may be
issued an on-sale intoxicating liquor or 3.2 percent malt liquor license by a
municipality for a restaurant operated in the place of manufacture.

Subd. 2.Off-sale
license.Notwithstanding section
340A.405, a brew pub that holds an on-sale license issued pursuant to this
section may, with the approval of the commissioner, be issued a license by a
municipality for off-sale of malt liquor produced and packaged on the licensed
premises.Off-sale of malt liquor shall
be limited to the legal hours for off-sale at exclusive liquor stores in the
jurisdiction in which the brew pub is located, and the malt liquor sold
off-sale must be removed from the premises before the applicable off-sale
closing time at exclusive liquor stores.Packaging of malt liquor for off-sale under this subdivision must comply
with section 340A.285.

Subd. 3.Total
retail sales.A brew pub's
total retail sales at on- or off-sale under this section may not exceed 3,500
barrels per year, provided that off-sales may not total more than 500 barrels.

Subd. 4.Interest
in other license.(a) A brew
pub may hold or have an interest in other retail on-sale licenses, but may not
have an ownership interest in whole or in part, or be an officer, director,
agent, or employee of, any other manufacturer, brewer, importer, or wholesaler,
or be an affiliate thereof whether the affiliation is corporate or by
management, direction, or control.

(b) Notwithstanding this prohibition, a
brew pub may be an affiliate or subsidiary company of a brewer licensed in
Minnesota or elsewhere if that brewer's only manufacture of malt liquor is:

(2)
manufacture in another state for consumption exclusively in a restaurant
located in the place of manufacture; or

Journal of the House - 32nd Day -
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1164

(3) manufacture in another
state for consumption primarily in a restaurant located in or immediately
adjacent to the place of manufacture if the brewer was licensed under section
340A.301, subdivision 6, clause (d), on January 1, 1995.

Subd. 5.Prohibition.A brew pub licensed under this chapter
may not be licensed as an importer under section 340A.302.

Sec. 4.[340A.26]
BREWER TAPROOMS.

Subdivision 1.Brewer
taproom license.(a) A
municipality, including a city with a municipal liquor store, may issue the
holder of a brewer's license under section 340A.301, subdivision 6, clause (c),
(i), or (j), a brewer taproom license.A
brewer taproom license authorizes on-sale of malt liquor produced by the brewer
for consumption on the premises of or adjacent to one brewery location owned by
the brewer.Nothing in this subdivision
precludes the holder of a brewer taproom license from also holding a license to
operate a restaurant at the brewery.Section
340A.409 shall apply to a license issued under this subdivision.All provisions of this chapter that apply to
a retail liquor license shall apply to a license issued under this subdivision
unless the provision is explicitly inconsistent with this subdivision.

(b) A brewer may only have one taproom
license under this subdivision, and may not have an ownership interest in a
brew pub.

Subd. 2.Prohibition.A municipality may not issue a brewer
taproom license to a brewer if the brewer seeking the license, or any person
having an economic interest in the brewer seeking the license or exercising
control over the brewer seeking the license, is a brewer that brews more than
250,000 barrels of malt liquor annually or a winery that produces more than
250,000 gallons of wine annually.

Subd. 4.Municipality
to inform commissioner.A
municipality shall, within ten days of the issuance of a license under this
subdivision, inform the commissioner of the licensee's name and address and
trade name, and the effective date and expiration date of the license.The municipality shall also inform the
commissioner of a license transfer, cancellation, suspension, or revocation
during the license period.

Subd. 5.Sunday
on-sale.Notwithstanding
section 340A.504, subdivision 3, a taproom may be open and may conduct on-sale
business on Sundays if authorized by the municipality.

Sec. 5.[340A.28]
SMALL BREWER OFF-SALE.

Subdivision 1.License;
limitations.A brewer
licensed under section 340A.301, subdivision 6, clause (c), (i), or (j), may be
issued a license by a municipality for off-sale of malt liquor at its licensed
premises that has been produced and packaged by the brewer.The license must be approved by the
commissioner.A brewer may only have one
license under this subdivision.The
amount of malt liquor sold at off-sale may not exceed 500 barrels annually.Off-sale of malt liquor shall be limited to
the legal hours for off-sale at exclusive liquor stores in the jurisdiction in
which the brewer is located, and the malt liquor sold off-sale must be removed
from the premises before the applicable off-sale closing time at exclusive liquor
stores.Packaging of malt liquor for
off-sale under this subdivision must comply with section 340A.285.

Subd. 2.Prohibition.A municipality may not issue a license
under this section to a brewer if the brewer seeking the license, or any person
having an economic interest in the brewer seeking the license or exercising
control over the brewer seeking the license, is a brewer that brews more than
20,000 barrels of its own brands of malt liquor annually or a winery that
produces more than 250,000 gallons of wine annually.

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(a) Malt liquor authorized for off-sale
pursuant to section 340A.24 or 340A.28 shall be packaged in 64-ounce containers commonly known as "growlers"
or in 750 milliliter bottles.The
containers or bottles shall bear a twist‑type closure, cork, stopper, or
plug.At the time of sale, a paper or
plastic adhesive band, strip, or sleeve shall be applied to the container
or bottle and extended over the top of the twist-type closure, cork, stopper,
or plug forming a seal that must be broken upon opening the container or bottle.The adhesive band, strip, or sleeve shall
bear the name and address of the brewer.The containers or bottles shall be identified as malt liquor, contain
the name of the malt liquor, bear the name and address of the brew pub or
brewer selling the malt liquor, and shall be considered intoxicating liquor
unless the alcoholic content is labeled as otherwise in accordance with the
provisions of Minnesota Rules, part 7515.1100.

(b) A brew pub or brewer may, but is
not required to, refill any container or bottle with malt liquor for off-sale
at the request of the customer.A brew
pub or brewer refilling a container or bottle must do so at its licensed
premises and the container or bottle must be filled at the tap at the time of
sale.A container or bottle refilled
under this paragraph must be sealed and labeled in the manner described in
paragraph (a).

Sec. 7.Minnesota Statutes 2014, section 340A.301, is
amended to read:

340A.301
MANUFACTURERS, BREWERS, AND WHOLESALERS LICENSES.

Subdivision 1.Licenses
required.No person may directly or
indirectly manufacture or sell at wholesale intoxicating liquor, or 3.2 percent
malt liquor without obtaining an appropriate license from the commissioner,
except where otherwise provided in this chapter.A manufacturer's license includes the right
to import.A licensed brewer may sell
the brewer's products at wholesale only if the brewer has been issued a
wholesaler's license.The commissioner
shall issue a wholesaler's license to a brewer only if (1) the commissioner
determines that the brewer was selling the brewer's own products at wholesale
in Minnesota on January 1, 1991, or (2) the brewer has acquired a wholesaler's
business or assets under subdivision 7a, paragraph (c) or (d).A licensed wholesaler of intoxicating malt
liquor may sell 3.2 percent malt liquor at wholesale without an additional
license.

Subd. 2.Persons
eligible.(a) Licenses under this
section may be issued only to a person who:

(1) is of good moral character and repute;

(2) is 21 years of age or older;

(3) has not had a license issued under
this chapter revoked within five years of the date of license application, or
to any person who at the time of the violation owns any interest, whether as a
holder of more than five percent of the capital stock of a corporation
licensee, as a partner or otherwise, in the premises or in the business
conducted thereon, or to a corporation, partnership, association, enterprise,
business, or firm in which any such person is in any manner interested; and

(4) has not been convicted within five
years of the date of license application of a felony, or of a willful violation
of a federal or state law, or local ordinance governing the manufacture, sale,
distribution, or possession for sale or distribution of alcoholic beverages.The Alcohol and Gambling Enforcement Division
may require that fingerprints be taken and may forward the fingerprints to the
Federal Bureau of Investigation for purposes of a criminal history check.

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(b) In order to determine if an
individual has a felony or willful violation of federal or state law governing
the manufacture, sale, distribution, or possession for sale or distribution of
an alcoholic beverage, the applicant for a license to manufacture or sell at
wholesale must provide the commissioner with their signed, written informed
consent to conduct a background check.The
commissioner may query the Minnesota criminal history repository for records on
the applicant.If the commissioner
conducts a national criminal history record check, the commissioner must obtain
fingerprints from the applicant and forward them and the required fee to the
superintendent of the Bureau of Criminal Apprehension.The superintendent may exchange the
fingerprints with the Federal Bureau of Investigation for purposes of obtaining
the applicant's national criminal history record information.The superintendent shall return the results
of the national criminal history records check to the commissioner for the
purpose of determining if the applicant is qualified to receive a license.

Subd. 3.Application.An application for a license under this
section must be made to the commissioner on a form the commissioner prescribes
and must be accompanied by the fee specified in subdivision 6.If an application is denied, $100 of the
amount of any fee exceeding that amount shall be retained by the commissioner
to cover costs of investigation.

Subd. 4.Bond.The commissioner may not issue a license
under this section to a person who has not filed a bond with corporate surety,
or cash, or United States government bonds payable to the state.The proof of financial responsibility must be
approved by the commissioner before the license is issued.The bond must be conditioned on the licensee
obeying all laws governing the business and paying when due all taxes, fees,
penalties and other charges, and must provide that it is forfeited to the state
on a violation of law.This subdivision
does not apply to a Minnesota farm winery, licensed under section 340A.315,
that is in existence as of January 1, 2010.Bonds must be in the following amounts:

Manufacturers and
wholesalers of intoxicating liquor except as provided in this subdivision

$10,000

Manufacturers and wholesalers of
wine up to 25 percent alcohol by weight

$5,000

Manufacturers and
wholesalers of beer of more than 3.2 percent alcohol by weight

$1,000

Manufacturers and wholesalers of
fewer than 20,000 proof gallons

$2,000

Manufacturers and wholesalers of
20,000 to 40,000 proof gallons

$3,000

Subd. 5.Period
of license.Licenses issued under
this section are valid for one year except that to coordinate expiration dates
initial licenses may be issued for a shorter period.

Subd. 6.Fees.The annual fees for licenses under this
section are as follows:

(a)

Manufacturers (except as provided
in clauses (b) and (c))

$30,000

Duplicates

$3,000

(b)

Manufacturers of wines of not
more than 25 percent alcohol by volume

$500

(c)

Brewers who manufacture more than
3,500 barrels of malt liquor in a year

$4,000

(d)

Brewers who also hold
one or more retail on-sale licenses and who manufacture fewer than 3,500
barrels of malt liquor in a year, at any one licensed premises, the entire
production of which is solely for consumption on tap on any licensed premises
owned by the brewer, or for off-sale from those licensed premises as
permitted in subdivision 7 Brew pubs.A brewer brew pub licensed
under this clause must obtain a separate license for each licensed premises
where the brewer brews brew pub produces malt liquor.A brewer licensed under this clause may not
be licensed as an importer under this chapter

$500

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(e)

Wholesalers (except as provided
in clauses (f), (g), and (h))

$15,000

Duplicates

$3,000

(f)

Wholesalers of wines of not more than 25 percent alcohol by
volume

$3,750

(g)

Wholesalers of intoxicating malt
liquor

$1,000

Duplicates

$25

(h)

Wholesalers of 3.2 percent malt
liquor

$10

(i)

Brewers who manufacture fewer than 2,000 barrels of malt
liquor in a year

$150

(j)

Brewers who manufacture 2,000 to 3,500 barrels of malt
liquor in a year

$500

If a business licensed under this section
is destroyed, or damaged to the extent that it cannot be carried on, or if it
ceases because of the death or illness of the licensee, the commissioner may
refund the license fee for the balance of the license period to the licensee or
to the licensee's estate.

Subd. 6a.Permits
and identification cards; fees.Any
person engaged in the purchase, sale, or use for any purpose other than
personal consumption of intoxicating alcoholic beverages or ethyl alcohol shall
obtain the appropriate regulatory permit and identification card from the
commissioner as provided in this subdivision.The fee for each permit, other than one issued to a state or federal
agency, is $35 and must be submitted together with the appropriate application
form provided by the commissioner.Identification
cards and permits must be issued for a period coinciding with that of the
appropriate state or municipal license and are not transferable.In instances where there is no annual license
period, cards and permits expire one year after the date of issuance.The authority to engage in the purchase,
sale, or use granted by the card or permit may be revoked by the commissioner
upon evidence of a violation by the holder of such a card or permit of any of
the provisions of chapter 340A or any rule of the commissioner made pursuant to
law.

Subd. 6b.Brewer
taproom license.(a) A
municipality, including a city with a municipal liquor store, may issue the
holder of a brewer's license under subdivision 6, clause (c), (i), or (j), a
brewer taproom license.A brewer taproom
license authorizes on-sale of malt liquor produced by the brewer for
consumption on the premises of or adjacent to one brewery location owned by the
brewer.Nothing in this subdivision
precludes the holder of a brewer taproom license from also holding a license to
operate a restaurant at the brewery.Section
340A.409 shall apply to a license issued under this subdivision.All provisions of this chapter that apply to
a retail liquor license shall apply to a license issued under this subdivision
unless the provision is explicitly inconsistent with this subdivision.

(b) A brewer may only have one taproom
license under this subdivision, and may not have an ownership interest in a
brewery licensed under subdivision 6, clause (d).

(c) A municipality may not issue a
brewer taproom license to a brewer if the brewer seeking the license, or any
person having an economic interest in the brewer seeking the license or
exercising control over the brewer seeking the license, is a brewer that brews
more than 250,000 barrels of malt liquor annually or a winery that produces
more than 250,000 gallons of wine annually.

(d) The municipality shall impose a
licensing fee on a brewer holding a brewer taproom license under this
subdivision, subject to limitations applicable to license fees under section
340A.408, subdivision 2, paragraph (a).

(e) A municipality shall, within ten
days of the issuance of a license under this subdivision, inform the
commissioner of the licensee's name and address and trade name, and the
effective date and expiration date of the license.The municipality shall also inform the
commissioner of a license transfer, cancellation, suspension, or revocation
during the license period.

(f) Notwithstanding section 340A.504,
subdivision 3, a taproom may be open and may conduct on-sale business on
Sundays if authorized by the municipality.

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Subd. 6c.Microdistilleries.The commissioner shall establish a fee
for licensing microdistilleries that adequately covers the cost of issuing the
license and other inspection requirements.The fees shall be deposited in an account in the special revenue fund
and are appropriated to the commissioner for the purposes of this subdivision.

Subd. 6d.Small
brewer license.(a) A brewer
licensed under subdivision 6, clause (c), (i), or (j), may be issued a license
by a municipality for off-sale of malt liquor at its licensed premises that has
been produced and packaged by the brewer.The license must be approved by the commissioner.The amount of malt liquor sold at off-sale
may not exceed 500 barrels annually.Off-sale
of malt liquor shall be limited to the legal hours for off-sale at exclusive
liquor stores in the jurisdiction in which the brewer is located, and the malt
liquor sold off-sale must be removed from the premises before the applicable
off-sale closing time at exclusive liquor stores.The malt liquor shall be packed in 64-ounce
containers commonly known as "growlers" or in 750 milliliter bottles.The containers or bottles shall bear a
twist-type closure, cork, stopper, or plug.At the time of the sale, a paper or plastic adhesive band, strip, or
sleeve shall be applied to the container or bottle and extended over the top of
the twist-type closure, cork, stopper, or plug forming a seal that must be
broken upon opening of the container or bottle.The adhesive band, strip, or sleeve shall bear the name and address of
the brewer.The containers or bottles
shall be identified as malt liquor, contain the name of the malt liquor, bear
the name and address of the brewer selling the malt liquor, and shall be considered
intoxicating liquor unless the alcoholic content is labeled as otherwise in
accordance with the provisions of Minnesota Rules, part 7515.1100.

(b) A brewer may, but is not required
to, refill any growler with malt liquor for off-sale at the request of a
customer.A brewer refilling a growler
must do so at its licensed premises and the growler must be filled at the tap
at the time of sale.A growler refilled
under this paragraph must be sealed and labeled in the manner described in
paragraph (a).

(c) A brewer may only have one license
under this subdivision.

(d) A municipality may not issue a
license under this subdivision to a brewer if the brewer seeking the license,
or any person having an economic interest in the brewer seeking the license or
exercising control over the brewer seeking the license, is a brewer that brews
more than 20,000 barrels of its own brands of malt liquor annually or a winery
that produces more than 250,000 gallons of wine annually.

(e) The municipality shall impose a licensing
fee on a brewer holding a license under this subdivision, subject to
limitations applicable to license fees under section 340A.408, subdivision 3,
paragraph (a).

Subd. 7.Interest in other business.(a) Except as provided in this
subdivision, a holder of a license as a manufacturer, brewer, importer, or
wholesaler may not have any ownership, in whole or in part, in a business
holding a retail intoxicating liquor or 3.2 percent malt liquor license.The commissioner may not issue a license
under this section to a manufacturer, brewer, importer, or wholesaler if a
retailer of intoxicating liquor has a direct or indirect interest in the
manufacturer, brewer, importer, or wholesaler.A manufacturer or wholesaler of intoxicating liquor may use or have
property rented for retail intoxicating liquor sales only if the manufacturer
or wholesaler has owned the property continuously since November 1, 1933.A retailer of intoxicating liquor may not use
or have property rented for the manufacture or wholesaling of intoxicating
liquor.

(b) A brewer licensed under subdivision 6,
clause (d), may be issued an on-sale intoxicating liquor or 3.2 percent malt
liquor license by a municipality for a restaurant operated in the place of
manufacture.Notwithstanding section
340A.405, a brewer who holds an on-sale license issued pursuant to this
paragraph may, with the approval of the commissioner, be issued a license by a
municipality for off-sale of malt liquor produced and packaged on the licensed
premises.Off-sale of malt liquor shall
be limited to the legal hours for off-sale at exclusive liquor stores in the
jurisdiction in which the brewer is located, and the malt liquor sold off-sale
must be removed from the premises before the applicable off-sale closing time at
exclusive liquor stores.The malt liquor
shall be packaged in 64-ounce containers commonly known as "growlers"
or in 750 milliliter bottles.The
containers or bottles shall bear a twist‑type closure, cork, stopper, or
plug.At the time of the sale, a paper
or plastic adhesive band, strip, or sleeve

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shall be applied to the
container or bottle and extend over the top of the twist-type closure, cork,
stopper, or plug forming a seal that must be broken upon opening of the
container or bottle.The adhesive band,
strip, or sleeve shall bear the name and address of the brewer.The containers or bottles shall be identified
as malt liquor, contain the name of the malt liquor, bear the name and address
of the brewer selling the malt liquor, and shall be considered intoxicating
liquor unless the alcoholic content is labeled as otherwise in accordance with
the provisions of Minnesota Rules, part
7515.1100.A brewer may, but is not
required to, refill any growler with malt liquor for off‑sale at the
request of a customer.A brewer
refilling a growler must do so at its licensed premises and the growler
must be filled at the tap at the time of sale.A growler refilled under this paragraph must be sealed and labeled in
the manner described in this paragraph.A
brewer's total retail sales at on- or off-sale under this paragraph may not
exceed 3,500 barrels per year, provided that off-sales may not total more than
500 barrels.A brewer licensed under
subdivision 6, clause (d), may hold or have an interest in other retail on-sale
licenses, but may not have an ownership interest in whole or in part, or be an
officer, director, agent, or employee of, any other manufacturer, brewer,
importer, or wholesaler, or be an affiliate thereof whether the affiliation is
corporate or by management, direction, or control.Notwithstanding this prohibition, a brewer
licensed under subdivision 6, clause (d), may be an affiliate or subsidiary
company of a brewer licensed in Minnesota or elsewhere if that brewer's only
manufacture of malt liquor is:

(i) manufacture licensed under
subdivision 6, clause (d);

(ii)
manufacture in another state for consumption exclusively in a restaurant
located in the place of manufacture; or

(iii) manufacture in another state for
consumption primarily in a restaurant located in or immediately adjacent to the
place of manufacture if the brewer was licensed under subdivision 6, clause
(d), on January 1, 1995.

(c)(b) Except as provided in
subdivision 7a, no brewer as defined in subdivision 7a or importer may have any
interest, in whole or in part, directly or indirectly, in the license,
business, assets, or corporate stock of a licensed malt liquor wholesaler.

Subd. 7a.Permitted
interests in wholesale business.(a)
A brewer may financially assist a wholesaler of malt liquor through
participation in a limited partnership in which the brewer is the limited
partner and the wholesaler is the general partner.A limited partnership authorized in this
paragraph may not exist for more than ten years from the date of its creation,
and may not, directly or indirectly, be recreated, renewed, or extended beyond
that date.

(b) A brewer may financially assist a malt
liquor wholesaler and collateralize the financing by taking a security interest
in the inventory and assets, other than the corporate stock, of the wholesaler.A financial agreement authorized by this
paragraph may not be in effect for more than ten years from the date of its
creation and may not be directly or indirectly extended or renewed.

(c) A brewer who, after creation of a
financial agreement authorized by paragraph (b), or after creation of a limited
partnership authorized in paragraph (a), acquires legal or equitable title to
the wholesaler's business which was the subject of the agreement or limited
partnership, or to the business assets, must divest the business or its assets
within two years of the date of acquiring them.A malt liquor wholesaler whose business or assets are acquired by a
brewer as described in this paragraph may not enter into another such financial
agreement, or participate in another such limited partnership, for 20 years
from the date of the acquisition of the business or assets.

(d) A brewer may have an interest in the
business, assets, or corporate stock of a malt liquor wholesaler as a result of
(1) a judgment against the wholesaler arising out of a default by the
wholesaler or (2) acquisition of title to the business, assets, or corporate
stock as a result of a written request of the wholesaler.A brewer may maintain ownership of or an
interest in the business, assets, or corporate stock under this paragraph for
not more than two years and only for the purpose of facilitating an orderly
transfer of the business to an owner not affiliated with the brewer.

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(e) A brewer may continue to
maintain an ownership interest in a malt liquor wholesaler if it owned the
interest on January 1, 1991.

(f) A brewer that was legally selling the
brewer's own products at wholesale in Minnesota on January 1, 1991, may
continue to sell those products at wholesale in the area where it was selling
those products on that date.

(g) A brewer that manufactures no more
than 20,000 barrels of malt liquor or its metric equivalent in a calendar year
may own or have an interest in a malt liquor wholesaler that sells only the
brewer's products, provided that a brewer that manufactures between 20,000 and
25,000 barrels in any calendar year shall be permitted to continue to own or
have an interest in a malt liquor wholesaler that sells only the brewer's products
if:(1) that malt liquor wholesaler
distributes no more than 20,000 barrels per calendar year; and (2) the brewer
has not manufactured 25,000 barrels in any calendar year.Notwithstanding the foregoing, a brewer that
manufactured between 20,000 and 25,000 barrels in 2012 shall be permitted to
continue to own or have an interest in a malt liquor wholesaler that sells only
the brewer's products until that brewer manufactures 25,000 barrels in a
calendar year.

(h) When the commissioner issues a license
to a malt liquor wholesaler described in paragraph (a) or (b), the commissioner
may issue the license only to the entity which is actually operating the
wholesale business and may not issue the license to a brewer that is a limited
partner under paragraph (a) or providing financial assistance under paragraph
(b) unless the brewer has acquired a wholesaler's business or assets under
paragraph (c) or (d).

(2) an officer, director, agent, or
employee of such a license holder; and

(3) an affiliate of such a license holder,
regardless of whether the affiliation is corporate or by management, direction,
or control.

Subd. 8.Sales
without license.A licensed brewer or
brew pub may without an additional license sell malt liquor to employees or
retired former employees, in amounts of not more than 768 fluid ounces in a
week for off‑premise consumption
only.A collector of commemorative
bottles, those terms are as defined in section 297G.01, subdivisions 4
and 5, may sell them to another collector without a license.It is also lawful for a collector of beer
cans to sell unopened cans of a brand which has not been sold commercially for
at least two years to another collector without obtaining a license.The amount sold to any one collector in any
one month shall not exceed 768 fluid ounces.A licensed manufacturer of wine containing not more than 25 percent
alcohol by volume nor less than 51 percent wine made from Minnesota-grown
agricultural products may sell at on-sale or off-sale wine made on the licensed
premises without a further license.

Subd. 9.Unlicensed
manufacture.(a) Nothing in this
chapter requires a license for the natural fermentation of fruit juices or
brewing of beer in the home for family use.

(b) Naturally fermented fruit juices or
beer made under this subdivision may be removed from the premises where made
for use at organized affairs, exhibitions, or competitions, including, but not
limited to, homemaker's contests, tastings, or judging.

(c) For purposes of this subdivision,
"tastings" means an event where the general public may sample
unlicensed naturally fermented fruit juices or beer.

(d) Beverages produced pursuant to this
subdivision may be sampled or used in tastings provided that the beverage is
made and transported in containers and equipment that shall not allow the
migration of toxic substances.

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(e) Public notice meeting the
requirements of this paragraph must be given in writing or signage at any
tasting.The notice shall include
disclosure that the unlicensed naturally fermented fruit juices or beer being
offered is homemade and not subject to state inspection, and may be consumed by
persons over the age of 21 at their own risk.The notice must include the name and address of the person who processed
and bottled the beverage.

(f) Naturally fermented fruit juices or
beer removed under this subdivision may not be sold or offered for sale.

Sec. 8.REVISOR'S
INSTRUCTION.

(a) The revisor of statutes shall
renumber the provisions of Minnesota Statutes listed in column A to the
references listed in column B.

Column A

Column B

340A.301, subdivision 6a

340A.301, subdivision 7

340A.301, subdivision 7

340A.301, subdivision 8

340A.301, subdivision 7a

340A.301, subdivision 9

340A.301, subdivision 8

340A.301, subdivision 10

340A.301, subdivision 9

340A.301, subdivision 11

(b) The revisor of statutes shall make
all necessary cross-reference changes in Minnesota Statutes and Minnesota Rules
consistent with the amendments and renumbering in this act.

(c) The revisor of statutes shall
transfer any changes made in article 2 into the recodification made in article
1.

Subd. 6d.Small
brewer license.(a) A brewer
licensed under subdivision 6, clause (c), (i), or (j), may be issued a license
by a municipality for off-sale of malt liquor at its licensed premises that has
been produced and packaged by the brewer.The license must be approved by the commissioner.The amount of malt liquor sold at off-sale
may not exceed 500 barrels annually.Off-sale
of malt liquor shall be limited to the legal hours for off-sale at exclusive
liquor stores in the jurisdiction in which the brewer is located, and the malt
liquor sold off-sale must be removed from the premises before the applicable
off-sale closing time at exclusive liquor stores, except that off-sale malt
liquor may be sold by a small brewer on Sundays.Sunday sales must be approved by the
licensing jurisdiction, and hours may be established by those jurisdictions.The malt liquor shall be packed in 64-ounce containers
commonly known as "growlers" or in 750 milliliter bottles.The containers or bottles shall bear a
twist-type closure, cork, stopper, or plug.At the time of the sale, a paper or plastic adhesive band, strip, or
sleeve shall be applied to the container or bottle and extended over the top of
the twist-type closure, cork, stopper, or plug forming a seal that must be
broken upon opening of the container or bottle.The adhesive band, strip, or sleeve shall bear the name and address of
the brewer.The containers or bottles
shall be identified as malt liquor, contain the name of the malt liquor, bear
the name and address of the brewer selling the malt liquor, and shall be
considered intoxicating liquor unless the alcoholic content is labeled as otherwise
in accordance with the provisions of Minnesota Rules, part 7515.1100.

(b) A brewer may, but is not required to,
refill any growler with malt liquor for off-sale at the request of a customer.A brewer refilling a growler must do so at
its licensed premises and the growler must be filled at the tap at the time of
sale.A growler refilled under this
paragraph must be sealed and labeled in the manner described in paragraph (a).

(c) A brewer may only have one license
under this subdivision.

(d) A municipality may not issue a license
under this subdivision to a brewer if the brewer seeking the license, or any
person having an economic interest in the brewer seeking the license or
exercising control over the brewer seeking the license, is a brewer that brews
more than 20,000 barrels of its own brands of malt liquor annually or a winery
that produces more than 250,000 gallons of wine annually.

(e) The municipality shall impose a
licensing fee on a brewer holding a license under this subdivision, subject to limitations
applicable to license fees under section 340A.408, subdivision 3, paragraph
(a).

(f) A brewer licensed under this
section must report quarterly to the commissioner, in a manner approved by the
commissioner, on the total amount of product sold in the form of bottles or
growlers.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

Subd. 7.Interest
in other business.(a) Except as
provided in this subdivision, a holder of a license as a manufacturer, brewer,
importer, or wholesaler may not have any ownership, in whole or in part, in a
business holding a retail intoxicating liquor or 3.2 percent malt liquor
license.The commissioner may not issue
a license under this section to a manufacturer, brewer, importer, or wholesaler
if a retailer of intoxicating liquor has a direct or indirect interest in the
manufacturer, brewer, importer, or wholesaler.A manufacturer or wholesaler of intoxicating

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1173

liquor may use or have property
rented for retail intoxicating liquor sales only if the manufacturer or
wholesaler has owned the property continuously since November 1, 1933.A retailer of intoxicating liquor may not use
or have property rented for the manufacture or wholesaling of intoxicating
liquor.

(b) A brewer licensed under subdivision 6,
clause (d), may be issued an on-sale intoxicating liquor or 3.2 percent malt
liquor license by a municipality for a restaurant operated in the place of
manufacture.Notwithstanding section
340A.405, a brewer who holds an on-sale license issued pursuant to this
paragraph may, with the approval of the commissioner, be issued a license by a
municipality for off-sale of malt liquor produced and packaged on the licensed
premises.Off-sale of malt liquor shall
be limited to the legal hours for off-sale at exclusive liquor stores in the
jurisdiction in which the brewer is located, and the malt liquor sold off-sale
must be removed from the premises before the applicable off-sale closing time
at exclusive liquor stores, except that off-sale malt liquor may be sold by
a brewer licensed under subdivision 6, clause (d), on Sundays.Sunday sales must be approved by the
licensing jurisdiction and hours may be established by those jurisdictions.The malt liquor shall be packaged in 64-ounce
containers commonly known as "growlers" or in 750 milliliter bottles.The containers or bottles shall bear a twist‑type
closure, cork, stopper, or plug.At
the time of the sale, a paper or plastic
adhesive band, strip, or sleeve shall be applied to the container or
bottle and extend over the top of the twist-type closure, cork, stopper, or
plug forming a seal that must be broken upon opening of the container or bottle.The adhesive band, strip, or sleeve shall
bear the name and address of the brewer.The containers or bottles shall be identified as malt liquor, contain
the name of the malt liquor, bear the name and address of the brewer selling
the malt liquor, and shall be considered intoxicating liquor unless the
alcoholic content is labeled as otherwise in accordance with the provisions of
Minnesota Rules, part 7515.1100.A
brewer may, but is not required to, refill any growler with malt liquor for
off-sale at the request of a customer.A
brewer refilling a growler must do so at its licensed premises and the growler
must be filled at the tap at the time of sale.A growler refilled under this paragraph must be sealed and labeled in
the manner described in this paragraph.A
brewer's total retail sales at on- or off-sale under this paragraph may not
exceed 3,500 barrels per year, provided that off-sales may not total more than
500 barrels.A brewer licensed under
this section must report quarterly to the commissioner, in a manner approved by
the commissioner, on the total amount of product, including separate reporting
on growlers and bottles, sold at off-sale.A brewer licensed under subdivision 6, clause (d), may hold or have an
interest in other retail on-sale licenses, but may not have an ownership
interest in whole or in part, or be an officer, director, agent, or employee
of, any other manufacturer, brewer, importer, or wholesaler, or be an affiliate
thereof whether the affiliation is corporate or by management, direction, or
control.Notwithstanding this
prohibition, a brewer licensed under subdivision 6, clause (d), may be an
affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere
if that brewer's only manufacture of malt liquor is:

(i) manufacture licensed under subdivision 6,
clause (d);

(ii)
manufacture in another state for consumption exclusively in a restaurant
located in the place of manufacture; or

(iii) manufacture in another state for
consumption primarily in a restaurant located in or immediately adjacent to the
place of manufacture if the brewer was licensed under subdivision 6, clause
(d), on January 1, 1995.

(c) Except as provided in subdivision 7a, no
brewer as defined in subdivision 7a or importer may have any interest, in whole
or in part, directly or indirectly, in the license, business, assets, or
corporate stock of a licensed malt liquor wholesaler.

Subd. 2.Special
provision; city of Minneapolis.(a)
The city of Minneapolis may issue an on-sale intoxicating liquor license to the
Guthrie Theater, the Cricket Theatre, the Orpheum Theatre, the State Theatre,
and the Historic Pantages Theatre, notwithstanding the limitations of law, or
local ordinance, or charter provision relating to zoning or school or church
distances.The licenses authorize sales
on all days of the week to holders of tickets for performances presented by the
theaters and to members of the nonprofit corporations holding the licenses and
to their guests.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1174

(b) The city of Minneapolis may
issue an intoxicating liquor license to 510 Groveland Associates, a Minnesota
cooperative, for use by a restaurant on the premises owned by 510 Groveland
Associates, notwithstanding limitations of law, or local ordinance, or charter
provision.

(c) The city of Minneapolis may issue an
on-sale intoxicating liquor license to Zuhrah Shrine Temple for use on the
premises owned by Zuhrah Shrine Temple at 2540 Park Avenue South in
Minneapolis, notwithstanding limitations of law, or local ordinances, or
charter provision relating to zoning or school or church distances.

(d) The city of Minneapolis may issue an
on-sale intoxicating liquor license to the American Association of University
Women, Minneapolis branch, for use on the premises owned by the American
Association of University Women, Minneapolis branch, at 2115 Stevens Avenue
South in Minneapolis, notwithstanding limitations of law, or local ordinances,
or charter provisions relating to zoning or school or church distances.

(e) The city of Minneapolis may issue an
on-sale wine license and an on-sale 3.2 percent malt liquor license to a
restaurant located at 5000 Penn Avenue South, and an on-sale wine license and
an on-sale malt liquor license to a restaurant located at 1931 Nicollet Avenue
South, notwithstanding any law or local ordinance or charter provision.

(f) The city of Minneapolis may issue an
on-sale wine license and an on-sale malt liquor license to the Brave New
Workshop Theatre located at 3001 Hennepin Avenue South, the Theatre de la Jeune
Lune, the Illusion Theatre located at 528 Hennepin Avenue South, the Hollywood
Theatre located at 2815 Johnson Street Northeast, the Loring Playhouse located
at 1633 Hennepin Avenue South, the Jungle Theater located at 2951 Lyndale
Avenue South, Brave New Institute located at 2605 Hennepin Avenue South, the
Guthrie Lab located at 700 North First Street, and the Southern Theatre located
at 1420 Washington Avenue South, notwithstanding any law or local ordinance or
charter provision.The license
authorizes sales on all days of the week.

(g) The city of Minneapolis may issue an
on-sale intoxicating liquor license to University Gateway Corporation, a
Minnesota nonprofit corporation, for use by a restaurant or catering operator
at the building owned and operated by the University Gateway Corporation on the
University of Minnesota campus, notwithstanding limitations of law, or local
ordinance or charter provision.The
license authorizes sales on all days of the week.

(h) The city of Minneapolis may issue an
on-sale intoxicating liquor license to the Walker Art Center's concessionaire
or operator, for a restaurant and catering operator on the premises of the
Walker Art Center, notwithstanding limitations of law, or local ordinance or
charter provisions.The license
authorizes sales on all days of the week.

(i) The city of Minneapolis may issue an
on-sale intoxicating liquor license to the Guthrie Theater's concessionaire or
operator for a restaurant and catering operator on the premises of the Guthrie
Theater, notwithstanding limitations of law, local ordinance, or charter
provisions.The license authorizes sales
on all days of the week.

(j) The city of Minneapolis may issue an
on-sale wine license and an on-sale malt liquor license to the Minnesota Book
and Literary Arts Building, Inc.'s concessionaire or operator for a restaurant
and catering operator on the premises of the Minnesota Book and Literary Arts
Building, Inc. (dba Open Book), notwithstanding limitations of law, or local
ordinance or charter provision.The
license authorizes sales on all days of the week.

(k) The city of Minneapolis may issue an
on-sale intoxicating liquor license to a restaurant located at 5411 Penn Avenue
South, notwithstanding any law or local ordinance or charter provision.

(l) The city of Minneapolis may issue an
on-sale intoxicating liquor license to the Museum of Russian Art's
concessionaire or operator for a restaurant and catering operator on the
premises of the Museum of Russian Art located at 5500 Stevens Avenue South,
notwithstanding any law or local ordinance or charter provision.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1175

(m) The city of Minneapolis may
issue an on-sale intoxicating liquor license to the American Swedish Institute
or to its concessionaire or operator for use on the premises owned by the
American Swedish Institute at 2600 Park Avenue South, notwithstanding
limitations of law, or local ordinances, or charter provision relating to
zoning or school or church distances.

(n) Notwithstanding any other law, local
ordinance, or charter provision, the city of Minneapolis may issue one or more
on-sale intoxicating liquor licenses to the Minneapolis Society of Fine Arts
(dba Minneapolis Institute of Arts), or to an entity holding a concessions or
catering contract with the Minneapolis Institute of Arts for use on the
premises of the Minneapolis Institute of Arts.The licenses authorized by this subdivision may be issued for space that
is not compact and contiguous, provided that all such space is included in the
description of the licensed premises on the approved license application.The licenses authorize sales on all days of
the week.

(o) The city of Minneapolis may issue an
on-sale intoxicating liquor license to Norway House or to its concessionaire or
operator for use on the premises owned by Norway House at 913 East Franklin
Avenue, notwithstanding limitations of law, or local ordinances, or charter
provision relating to zoning or school or church distances.

EFFECTIVE
DATE.This section is
effective upon approval by the Minneapolis City Council and compliance with
Minnesota Statutes, section 645.021.

Subd. 3.Intoxicating
liquor; Sunday sales; on-sale.(a) A
restaurant, club, bowling center, or hotel with a seating capacity for at least
30 persons and which holds an on-sale intoxicating liquor license may sell
intoxicating liquor for consumption on the premises in conjunction with the
sale of food between the hours of 10:008:00 a.m. on Sundays and
2:00 a.m. on Mondays.

(b) An
establishment serving intoxicating liquor on Sundays must obtain a Sunday
license.The license must be issued by the governing body of the municipality for a
period of one year, and the fee for the license may not exceed $200.

(c) A city may issue a Sunday intoxicating
liquor license only if authorized to do so by the voters of the city voting on
the question at a general or special election.A county may issue a Sunday intoxicating liquor license in a town only
if authorized to do so by the voters of the town as provided in paragraph (d).A county may issue a Sunday intoxicating
liquor license in unorganized territory only if authorized to do so by the
voters of the election precinct that contains the licensed premises, voting on
the question at a general or special election.

(d) An election conducted in a town on the
question of the issuance by the county of Sunday sales licenses to
establishments located in the town must be held on the day of the annual
election of town officers.

(e) Voter approval is not required for
licenses issued by the Metropolitan Airports Commission or common carrier
licenses issued by the commissioner.Common
carriers serving intoxicating liquor on Sunday must obtain a Sunday license
from the commissioner at an annual fee of $75, plus $30 for each duplicate.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

Sec. 6.SPECIAL
LICENSE; BECKER.

Notwithstanding any law or ordinance to
the contrary, the city of Becker may issue an on-sale intoxicating liquor
license for a golf course that is located at 14000 Clubhouse Lane and is owned
by the city.The provisions of Minnesota
Statutes, chapter 340A, not inconsistent with this section, apply to the
license issued under this section.The
city of Becker is deemed the licensee under this section, and the provisions of
Minnesota Statutes, sections 340A.603 and 340A.604, apply to the license as if
the establishment were a municipal liquor store.

EFFECTIVE
DATE.This section is
effective upon approval by the Becker City Council and compliance with
Minnesota Statutes, section 645.021.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1176

Sec. 7.SPECIAL
LICENSE; DULUTH.

Notwithstanding any law or ordinance to
the contrary, the city of Duluth may issue an on-sale intoxicating liquor
license for the Lester Park Golf Course that is located at 1860 Lester River
Road and is owned by the city.The
provisions of Minnesota Statutes, chapter 340A, not inconsistent with this
section, apply to the license issued under this section.The city of Duluth is deemed the licensee
under this section, and the provisions of Minnesota Statutes, sections 340A.603
and 340A.604, apply to the license as if the establishment were a municipal
liquor store.

EFFECTIVE
DATE.This section is
effective upon approval by the Duluth City Council and compliance with
Minnesota Statutes, section 645.021.

Sec. 8.SPECIAL
LICENSE; INVER GROVE HEIGHTS.

Notwithstanding any law or ordinance to
the contrary, the city of Inver Grove Heights may issue an on-sale intoxicating
liquor license for the Inver Wood Golf Course that is located at 1850 70th
Street and is owned by the city.The
provisions of Minnesota Statutes, chapter 340A, not inconsistent with this
section, apply to the license issued under this section.The city of Inver Grove Heights is deemed the
licensee under this section, and the provisions of Minnesota Statutes, sections
340A.603 and 340A.604, apply to the license as if the establishment were a
municipal liquor store.

EFFECTIVE
DATE.This section is
effective upon approval by the Inver Grove Heights City Council and compliance
with Minnesota Statutes, section 645.021.

Sec. 9.STATE
FAIR; BREW PUB SALES.

Notwithstanding Minnesota Statutes,
section 340A.301, subdivision 6, paragraph (d), a brew pub may sell kegs of
malt liquor to licensed wholesalers for distribution exclusively to a single
retail licensee for sales at a single location by the State Agricultural
Society during the annual fair, under Minnesota Statutes, section 37.21,
subdivision 2, paragraph (b).

(b) The director of the Division of
Alcohol and Gambling Enforcement must prepare testimony for the house of
representatives Commerce and Regulatory Reform Committee, and any other
relevant committee, about whether current laws could be adequately enforced
with regard to the manufacture, importation, distribution, and sale of powdered
alcohol.The director may make
recommendations for legislation addressing any stated concerns.The testimony required under this paragraph
is due by December 7, 2015.

(c) The commissioner of health must
prepare testimony for the house of representatives Health and Human Services
Reform Committee, and any other relevant committee, about the public health
impact of powdered alcohol.The
commissioner must address whether there is a potential for greater abuse of and
addiction to powdered alcohol relative to malt liquor, wine, and distilled
spirits.The commissioner may make
recommendations for legislation addressing any stated concerns.The testimony required under this paragraph
is due by December 7, 2015.

EFFECTIVE
DATE.This section is
effective the day following final enactment."

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1177

Delete the title and insert:

"A bill for an act relating to liquor;
recodifying certain provisions relating to licensing and brewers; providing for
the sale and other regulations of liquor; authorizing and establishing various
licenses; amending Minnesota Statutes 2014, sections 340A.101, by adding a
subdivision; 340A.22; 340A.301; 340A.404, subdivision 2; 340A.504, subdivision
3; proposing coding for new law in Minnesota Statutes, chapter 340A."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

The definitions in paragraphs (a) to (h)
apply to sections 325N.01 to 325N.09.

(a) "Foreclosure consultant"
means any person who, directly or indirectly, makes any solicitation,
representation, or offer to any owner to perform for compensation or who, for
compensation, performs any service which the person in any manner represents
will in any manner do any of the following:

(1) stop or postpone the foreclosure sale;

(2) obtain any forbearance from any
beneficiary or mortgagee;

(3) assist the owner to exercise the right
of reinstatement provided in section 580.30;

(4) obtain any extension of the period
within which the owner may reinstate the owner's obligation;

(5) obtain any waiver of an acceleration
clause contained in any promissory note or contract secured by a mortgage on a
residence in foreclosure or contained in the mortgage;

(6) assist the owner in foreclosure or
loan default to obtain a loan or advance of funds;

(7) avoid or ameliorate the impairment of
the owner's credit resulting from the recording of a notice of default or the
conduct of a foreclosure sale;

(8) save the owner's residence from
foreclosure; or

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1179

(9) negotiate or modify the
terms or conditions of an existing residential mortgage loan.

(b) A foreclosure consultant does not
include any of the following:

(1) a person licensed to practice law in
this state when the person renders service in the course of the person's
practice as an attorney-at-law;

(2) a person licensed as a debt management
services provider under chapter 332A, when the person is acting as a debt
management services provider as defined in that chapter;

(3) a person licensed as a real estate
broker or salesperson under chapter 82 when the person engages in acts whose
performance requires licensure under that chapter unless the person is engaged
in offering services designed to, or purportedly designed to, enable the owner
to retain possession of the residence in foreclosure;

(4) a person licensed as an accountant
under chapter 326A when the person is acting in any capacity for which the
person is licensed under those provisions;

(5) a person or the person's authorized
agent acting under the express authority or written approval of the Department
of Housing and Urban Development or other department or agency of the United
States or this state to provide services;

(6) a person who holds or is owed an
obligation secured by a lien on any residence in foreclosure when the person
performs services in connection with this obligation or lien if the obligation
or lien did not arise as the result of or as part of a proposed foreclosure
reconveyance;

(7) any person or entity doing business
under any law of this state, or of the United States relating to banks, trust
companies, savings and loan associations, industrial loan and thrift companies,
regulated lenders, credit unions, insurance companies, or a mortgagee which is
a United States Department of Housing and Urban Development approved mortgagee
and any subsidiary or affiliate of these persons or entities, and any agent or
employee of these persons or entities while engaged in the business of these
persons or entities;

(8) a person licensed as a residential
mortgage originator or servicer pursuant to chapter 58, when acting under the
authority of that license, except that the provisions of sections 325N.01 to
325N.06, 325N.08, and 325N.09 shall apply to any person operating under a
mortgage originator license who negotiates or offers to negotiate the terms or
conditions of an existing residential mortgage loan;

(9) a nonprofit agency or organization that
has tax-exempt status under section 501(c)(3) of the Internal Revenue Code that
offers counseling or advice to an owner of a home in foreclosure or loan
default if they do not contract for services with for-profit lenders or
foreclosure purchasers, except that they shall comply with the provisions of
section 325N.04, clause (1);

(10) a judgment creditor of the owner, to
the extent that the judgment creditor's claim accrued prior to the personal
service of the foreclosure notice required by section 580.03, but excluding a
person who purchased the claim after such personal service; and

(11) a foreclosure purchaser as defined in
section 325N.10.

(c) "Foreclosure reconveyance"
means a transaction involving:

(1) the transfer of title to real property
by a foreclosed homeowner during a foreclosure proceeding, either by transfer
of interest from the foreclosed homeowner or by creation of a mortgage or other
lien or encumbrance during the foreclosure process that allows the acquirer to
obtain title to the property by redeeming the property as a junior lienholder;
and

Journal of the House - 32nd Day -
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1180

(2) the subsequent conveyance,
or promise of a subsequent conveyance, of an interest back to the foreclosed
homeowner by the acquirer or a person acting in participation with the acquirer
that allows the foreclosed homeowner to possess either the residence in
foreclosure or any other real property, which interest includes, but is not
limited to, an interest in a contract for deed, purchase agreement, option to
purchase, or lease.

(e) "Service" means and includes,
but is not limited to, any of the following:

(1) debt, budget, or financial counseling
of any type;

(2) receiving money for the purpose of
distributing it to creditors in payment or partial payment of any obligation
secured by a lien on a residence in foreclosure;

(3) contacting creditors or servicers to
negotiate or offer to negotiate the terms or conditions of an existing
residential mortgage loan;

(4) arranging or attempting to arrange for
an extension of the period within which the owner of a residence in foreclosure
may cure the owner's default and reinstate the owner's obligation pursuant to
section 580.30;

(5) arranging or attempting to arrange for
any delay or postponement of the time of sale of the residence in foreclosure;

(6) advising the filing of any document or
assisting in any manner in the preparation of any document for filing with any
bankruptcy court; or

(7) giving any advice, explanation, or
instruction to an owner of a residence in foreclosure, which in any manner
relates to the cure of a default in or the reinstatement of an obligation
secured by a lien on the residence in foreclosure, the full satisfaction of
that obligation, or the postponement or avoidance of a sale of a residence in
foreclosure, pursuant to a power of sale contained in any mortgage.

(f) "Residence in foreclosure"
means residential real property consisting of one to four family dwelling
units, one of which the owner occupies as the owner's principal place of
residence, or real property that is principally used for farming, as defined
in section 500.24, subdivision 2, whether or not parcels are contiguous, so
long as the owner occupies one of the parcels as the owner's principal place of
residence, where there is a delinquency or default on any loan payment or
debt secured by or attached to the residential real property including, but not
limited to, contract for deed payments.

(g) "Owner" means the record
owner of the residential real property in foreclosure at the time the notice of
pendency was recorded, or the summons and complaint served.

(h) "Contract" means any
agreement, or any term in any agreement, between a foreclosure consultant and
an owner for the rendition of any service as defined in paragraph (e)."

Page 1, delete section 3

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1181

Scott from the Committee on
Civil Law and Data Practices to which was referred:

Subdivision 1.Accreditation.To establish a uniform standard by which
concurrent enrollment courses and professional development activities may be
measured, postsecondary institutions are encouraged to apply for
accreditation bymust adopt and implement the National Alliance of
Concurrent Enrollment PartnershipPartnership's program standards and
required evidence for accreditation by the 2020-2021 school year and later."

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Job Growth and
Energy Affordability Policy and Finance.

The report was adopted.

Scott from the
Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1272, A bill for
an act relating to human services; providing for correction orders and
conditional licenses for home and community-based services programs; providing
for settlement agreements; amending Minnesota Statutes 2014, section 245A.06,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapter 245A.

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Health and
Human Services Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

Subd. 2a.Terms.Following each apportionment of council
districts, as provided under subdivision 3a, council members must be appointed
from newly drawn districts as provided in subdivision 3a.Each council member, other than the chair,
must reside in the council district represented.Each council district must be represented by
one member of the council.The terms
of members end with the term of the governorare staggered as
follows:members representing
even-numbered districts have terms ending the first Monday in January of the
year ending in the numeral "7"; and members representing odd-numbered
districts have terms ending the first Monday in January of the year ending in
the numeral "5." Thereafter the term of each member is four years,
with terms ending the first Monday in January, except that all terms expire
on the effective date of the next apportionment.A member serves at the pleasure of the
governor.A member shall continue to
serve the member's district until a successor is appointed and qualified;
except that, following each apportionment, the member shall continue to serve
at large until the governor appoints 16 council members, one from each of the
newly drawn council districts as provided under subdivision 3a, to serve terms
as provided under this section.The
appointment to the council must be made by the first Monday in March of the
year in which the term ends.

EFFECTIVE
DATE; APPLICATION.This section
is effective the day following final enactment and applies in the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page 1184

Subd. 3.Membership;
appointment; qualifications.(a)
Sixteen members must be appointed by the governor from districts defined by
this section.Each council member must
reside in the council district represented.Each council district must be represented by one member of the council.Each Metropolitan Council member must be
an elected city council member or mayor, or county commissioner.A Metropolitan Council member's office
becomes vacant if the person appointed to that position ceases to be an elected
city council member or mayor, or county commissioner.

(b) In addition to the notice required by
section 15.0597, subdivision 4, notice of vacancies and expiration of terms
must be published in newspapers of general circulation in the metropolitan area
and the appropriate districts.The
governing bodies of the statutory and home rule charter cities, counties, and
towns having territory in the district for which a member is to be appointed
must be notified in writing.The notices
must describe the appointments process and invite participation and
recommendations on the appointment.

(c) The governor shall create a
nominating committee, composedA committee of seven metropolitan
citizens appointed by the governor, toshall nominate persons for
appointment to the council from districts.Three of the committee members must be local elected officials appointed
by Metro Cities, one must be a county commissioner appointed by the Association
of Minnesota Counties, and three must be appointed by the governor.Following the submission of applications as
provided under section 15.0597, subdivision 5, the nominating committee shall
conduct public meetings, after appropriate notice, to accept statements from or
on behalf of persons who have applied or been nominated for appointment and to
allow consultation with and secure the advice of the public and local elected
officials.The committee shall hold the
meeting on each appointment in the district or in a reasonably convenient and
accessible location in the part of the metropolitan area in which the district
is located.The committee may
consolidate meetings.Following the
meetings, the committee shall submit to the governor a list of nominees for
each appointment.The governor is not
required to appoint from the list.

(d) Before making an appointment, the
governor shall consult with all members of the legislature from the council
district for which the member is to be appointed.

(e) Appointments to the council are
subject to the advice and consent of the senate as provided in section 15.066.

(f) Members of the council must be
appointed to reflect fairly the various demographic, political, and other
interests in the metropolitan area and the districts.

(g) Members of the council must be persons
knowledgeable about urban and metropolitan affairs.

(h) Any vacancy in the office of a council
member shall immediately be filled for the unexpired term.In filling a vacancy, the governor may forgo
the requirements of paragraph (c) if the governor has made appointments in full
compliance with the requirements of this subdivision within the preceding 12
months.

EFFECTIVE
DATE; APPLICATION.This
section is effective the day following final enactment and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Subd. 4.Chair;
appointment, officers, selection; duties and compensation.(a) The chair of the Metropolitan Council
shall be appointedelected by the governor16 members
of the council as the 17th voting member thereof by and with the advice and
consent of the senate to serve at the pleasure of the governorcouncil
to represent the metropolitan area at large.Senate confirmation shall be as provided by section 15.066.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1185

The chair of the Metropolitan
Council shall, if present, preside at meetings of the council, have the primary
responsibility for meeting with local elected officials, serve as the principal
legislative liaison, present to the governor and the legislature, after council
approval, the council's plans for regional governance and operations, serve as
the principal spokesperson of the council, and perform other duties assigned by
the council or by law.

(b) The Metropolitan Council shall elect
other officers as it deems necessary for the conduct of its affairs for a
one-year term.A secretary and treasurer
need not be members of the Metropolitan Council.Meeting times and places shall be fixed by
the Metropolitan Council and special meetings may be called by a majority of
the members of the Metropolitan Council or by the chair.The chair and each Metropolitan Council
member shall be reimbursed for actual and necessary expenses.

(c) Each member of the council shall
attend and participate in council meetings and meet regularly with local
elected officials and legislative members from the council member's district.Each council member shall serve on at least
one division committee for transportation, environment, or community
development.

(d) In the performance of its duties the
Metropolitan Council may adopt policies and procedures governing its operation,
establish committees, and, when specifically authorized by law, make
appointments to other governmental agencies and districts.

EFFECTIVE
DATE; APPLICATION.This
section is effective the day following final enactment and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.The term of the chair of the Metropolitan
Council serving on the effective date of this section ends on that date, but
the chair may continue serving until a new chair is elected by the council
under this section.

For members serving on the Metropolitan
Council on the effective date of this section, other than the chair, members
representing even-numbered districts shall serve terms ending the first Monday
in January 2019, and members representing odd-numbered districts shall serve
terms ending the first Monday in January 2017.Thereafter the term of each member is four years, with terms ending the
first Monday in January.

EFFECTIVE
DATE; APPLICATION.This
section is effective the day following final enactment and applies in the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington."

Delete the title and insert:

"A bill for an act relating to the
Metropolitan Council; providing for staggered terms of Metropolitan Council
members; modifying the membership of the Metropolitan Council to include local
elected officials; providing for the council to select its own chair; modifying
the membership of the nominating committee; amending Minnesota Statutes 2014,
section 473.123, subdivisions 2a, 3, 4."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1186

McNamara from the Committee on
Environment and Natural Resources Policy and Finance to which was referred:

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Mack from the
Committee on Health and Human Services Reform to which was referred:

H. F. No. 1341, A bill for
an act relating to human services; appropriating money to the Deaf and
Hard-of-Hearing Services Division; appropriating money for services for people
who are deaf, deafblind, or hard-of-hearing.

Reported the same back with the following
amendments:

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page
1187

Delete everything after the
enacting clause and insert:

"Section 1.APPROPRIATION;
DEAF AND HARD-OF-HEARING SERVICES DIVISION.

$750,000 in fiscal year 2016 and
$750,000 in fiscal year 2017 are appropriated from the general fund to the
commissioner of human services for the Deaf and Hard-of-Hearing Services
Division under Minnesota Statutes, section 256C.233.This appropriation is added to the base.The funds must be used for the following
purposes:

(1) to provide linguistically and
culturally appropriate mental health services for persons who are deaf,
deafblind, or hard-of-hearing;

(2) to ensure that each regional
advisory committee meets at least quarterly;

(3) to increase the number of deafblind
Minnesotans receiving services;

(4) in consultation with the Commission
of Deaf, DeafBlind and Hard of Hearing Minnesotans, to conduct an analysis of
how the regional offices and staff are distributed, operated, and funded in
order to determine if the current distribution best serves the needs of the
deaf, deafblind, and hard-of-hearing community throughout Minnesota, and to
report on the analysis and make recommendations by January 15, 2016, to the
chairs and ranking minority members of the health and human services committees
in the senate and house of representatives;

(5) during fiscal year 2016, to provide
direct services to clients and purchase additional technology for the
technology labs; and

(6) to conduct an analysis of whether
deafblind services are being provided in the best and most efficient way
possible, with input from deafblind Minnesotans receiving services.

Sec. 2.APPROPRIATION;
SERVICES FOR PEOPLE WHO ARE DEAF, DEAFBLIND, AND HARD‑OF-HEARING.

$250,000 in fiscal year 2016 and
$250,000 in fiscal year 2017 are appropriated from the general fund to the
commissioner of human services for deaf and hard-of-hearing grants under
Minnesota Statutes, section 256C.261.The
funds must be used to increase the number of deafblind Minnesotans receiving
services.This appropriation is added to
the base."

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Finance.

The report was adopted.

Scott from the
Committee on Civil Law and Data Practices to which was referred:

H. F. No. 1342, A bill for
an act relating to property; regulating property transfers; enacting amendments
to the Uniform Fraudulent Transfer Act recommended by the National Conference
of Commissioners on Uniform State Laws for enactment by the states; amending
Minnesota Statutes 2014, sections 513.41; 513.42; 513.43; 513.44; 513.45;
513.46; 513.47; 513.48; 513.51; proposing coding for new law in Minnesota
Statutes, chapter 513.

Reported the same back with the
recommendation that the bill be placed on the General Register.

The report was adopted.

Journal of the House - 32nd Day -
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1188

Sanders from the Committee on
Government Operations and Elections Policy to which was referred:

H. F. No. 1354, A bill for
an act relating to public safety; requiring active firefighter deaths to be reported
to the state fire marshal; providing continued health insurance coverage to
families of noncareer firefighters who die in the line of duty; amending
Minnesota Statutes 2014, section 299A.465, subdivision 5, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 299F.

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Transportation
Policy and Finance.

The report was adopted.

Scott from the
Committee on Civil Law and Data Practices to which was referred:

"(b) In any case where a
certificate of dissolution has not been prepared, either party may make a
written request for a certificate of dissolution and the court shall approve a
request pursuant to this section.The
court may require the requesting party or their attorney to prepare the
certificate of dissolution and submit the certificate to the court."

Page 1, strike lines 20 and 21

Page 1, line 22, strike "(4)" and
insert "(3)"

Page 1, line 23, strike "(5)" and
insert "(4)"

Page 2, line 1, strike "(6)"

Page 2, line 3, before "if"
insert "(5)"

Page 2, line 8, before the period, insert
", except that subdivision 1, paragraph (b), applies to judgments and
decrees granted before, on, or after August 1, 2015"

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

With the recommendation that when so
amended the bill be re-referred to the Committee on Job Growth and Energy
Affordability Policy and Finance.

The report was adopted.

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1190

Scott from the Committee on
Civil Law and Data Practices to which was referred:

H. F. No. 1460, A bill for
an act relating to human services; requiring the commissioner of human services
to contract with a vendor to verify the eligibility of medical assistance and
MinnesotaCare enrollees; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 256B.

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Health and
Human Services Finance.

The report was adopted.

Cornish from the
Committee on Public Safety and Crime Prevention Policy and Finance to which was
referred:

Page 2, line 3, after "(b)" insert
"Except as otherwise provided under this paragraph," and
reinstate the stricken language

Page 2, line 4, delete the new language and
after the period, insert "If a lawful gambling organization loses its
gambling manager or its gambling manager is not capable of performing the
manager's duties, an interim gambling manager from another lawful gambling
organization may be appointed by the organization with a vacancy to fill the
vacant gambling manager position.An
interim gambling manager may not serve at an organization with a vacancy for
more than 120 days.A gambling manager
serving as an interim gambling manager under this paragraph is not required to
be a member of the lawful gambling organization with a vacancy at the time the
interim manager begins service to the organization with a vacancy."

Page 4, line 26, reinstate the stricken
language

Page 4, line 32, reinstate the stricken
colon

Page 4, line 33, reinstate the stricken
language and delete the period

Page 5, lines 1 to 12, reinstate the
stricken language

Page 5, line 12, after the period, insert
"All contributions made by the local unit of government or entity
selected by the local unit of government to distribute funds contributed under
this clause must acknowledge the original source of the funds in all
communications, outreach activities, and distribution of funds."

With the recommendation that when so
amended the bill be placed on the General Register.

The report was adopted.

Journal of the House - 32nd Day -
Monday, March 23, 2015 - Top of Page 1191

Sanders
from the Committee on Government Operations and Elections Policy to which was
referred:

H. F. No. 1529, A bill for
an act relating to education; creating Education Savings Accounts for Students
with Special Needs Act; appropriating money.

Reported the same back with the
recommendation that the bill be re-referred to the Committee on Education
Finance.

The report was adopted.

Mack from the
Committee on Health and Human Services Reform to which was referred:

(a) "Individual" means an
individual according to section 13.02, subdivision 8, but does not include a
vendor of services.

(b) "Program" includes all
programs for which authority is vested in a component of the welfare system
according to statute or federal law, including, but not limited to, the aid to
families with dependent children program formerly codified in sections 256.72
to 256.87, Minnesota family investment program, temporary assistance for needy
families program, medical assistance, general assistance, general assistance
medical care, child care assistance program, and child support collections.

(c) "Welfare system" includes:

(1) the Department of Human
Services,;

(2) local social services agencies,;

(3) county welfare agencies,;

(4) private licensing agencies,;

(5) the public authority
responsible for child support enforcement,;

(6) human services boards,;

(7) community mental health center
boards,;

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1192

(8) state hospitals,;

(9) state nursing homes,;

(10) the ombudsman for mental
health and developmental disabilities,;

(11) tribal social services or welfare
agencies that are operated by federally recognized tribes and that are under
contract to any of the above agencies to the extent specified in the contract;
and

(12) persons, agencies,
institutions, organizations, and other entities under contract to any of the
above agencies to the extent specified in the contract.

(d) "Mental health data" means
data on individual clients and patients of community mental health centers,
established under section 245.62, mental health divisions of counties and other
providers under contract to deliver mental health services, or the ombudsman
for mental health and developmental disabilities.

(e) "Fugitive felon" means a
person who has been convicted of a felony and who has escaped from confinement
or violated the terms of probation or parole for that offense.

(f) "Private licensing agency"
means an agency licensed by the commissioner of human services under chapter
245A to perform the duties under section 245A.16.

Subd. 3.Investigative
data.(a) Data on persons, including
data on vendors of services, licensees, and applicants that is collected, maintained,
used, or disseminated by the welfare system in an investigation, authorized by
statute, and relating to the enforcement of rules or law are confidential data
on individuals pursuant to section 13.02, subdivision 3, or protected nonpublic
data not on individuals pursuant to section 13.02, subdivision 13, and shall
not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to statute or valid court
order;

(3) to a party named in a civil or
criminal proceeding, administrative or judicial, for preparation of defense; or

(4) to provide notices required or
permitted by statute.; or

(5) for purposes of investigation or
prosecution under a criminal, civil, or administrative proceeding related to
the administration of a program in the welfare system to:

(i) an agent of the welfare system; or

(ii) a law enforcement officer, an
investigator, or a prosecutor acting on behalf of a county, the state, or the
federal government.

The data referred to in this subdivision
shall be classified as public data upon submission to an administrative law
judge or court in an administrative or judicial proceeding.Inactive welfare investigative data shall be
treated as provided in section 13.39, subdivision 3.

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1193

(b) Notwithstanding any other
provision in law, the commissioner of human services shall provide all active
and inactive investigative data, including the name of the reporter of alleged
maltreatment under section 626.556 or 626.557, to the ombudsman for mental
health and developmental disabilities upon the request of the ombudsman.

(c) Notwithstanding paragraph (a) and
section 13.39, the existence of an investigation by the commissioner of
possible overpayments of public funds to a service provider or recipient may be
disclosed if the commissioner determines that it will not compromise the
investigation.

Subd. 9.Data
on medical assistance applicants and current or former recipients.Certain data on medical assistance
applicants and current or former recipients of medical assistance may be shared
according to section 256B.04, subdivision 25.

(2) other data on holders of a disability
certificate under section 169.345, except that data that are not medical data
may be released to law enforcement agencies;

(3) Social Security numbers in driver's
license and motor vehicle registration records, except that Social Security
numbers must be provided to the Department of Revenue for purposes of tax
administration, the Department of Labor and Industry for purposes of workers'
compensation administration and enforcement, and the Department of Natural
Resources for purposes of license application administration; and:

(i) the Department of Revenue for
purposes of tax administration;

(ii) the Department of Labor and
Industry for purposes of workers' compensation administration and enforcement;

(iii) the Department of Human Services
for purposes of recovering Minnesota health care program benefits paid for
recipients injured in motor vehicle accidents; and

(iv) the Department of Natural
Resources for purposes of license application administration; and

(4) data on persons listed as standby or
temporary custodians under section 171.07, subdivision 11, except that the data
must be released to:

(i) law enforcement agencies for the
purpose of verifying that an individual is a designated caregiver; or

Journal of the House - 32nd Day -
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1194

(ii) law enforcement agencies
who state that the license holder is unable to communicate at that time and
that the information is necessary for notifying the designated caregiver of the
need to care for a child of the license holder.

The department may release the Social
Security number only as provided in clause (3) and must not sell or otherwise
provide individual Social Security numbers or lists of Social Security numbers
for any other purpose.

(b) The following government data of the
Department of Public Safety are confidential data:data concerning an individual's driving
ability when that data is received from a member of the individual's family.

(b) Child care assistance program
payment data are public when the data relate to a child care assistance program
payment made to a licensed child care center or a child care center exempt from
licensure that meets one or more of the following criteria:

(1) the center has been disqualified
from receiving payment for child care services from the child care assistance
program under this chapter due to wrongfully obtaining child care assistance
under section 256.98, subdivision 8, paragraph (c);

(2) the center has been refused a child
care authorization, has had a child care authorization revoked, has had a
payment stopped, or has been denied payment for a bill under section 119B.13,
subdivision 6, paragraph (d); or

(3) the center has been investigated
for financial misconduct under section 245E.02, resulting in a finding that
financial misconduct occurred.

Any payment data that may identify a specific child care
assistance recipient or benefits paid on behalf of a specific child care
assistance recipient, as determined by the commissioner, are private data on
individuals.For purposes of this
paragraph, "payment data" means data showing that a child care
assistance program payment was made and the amount of child care assistance
program payments made to a child care center over a specified time period.Payment data may include the numbers of
families and children on whose behalf payments were made over the specified
time period.

Subd. 2c.Privacy
notice to background study subject.(a)
Prior to initiating each background study, the entity initiating the study must
provide the commissioner's privacy notice to the background study subject
required under section 13.04, subdivision 2.The notice must be available through the commissioner's electronic NETStudy
and NETStudy 2.0 systems and shall include the information in paragraphs (b)
and (c).

(b) The background study subject shall be
informed that any previous background studies that received a set‑aside will be reviewed, and without
further contact with the background study subject, the commissioner may notify
the agency that initiated the subsequent background study:

(1)
that the individual has a disqualification that has been set aside for the
program or agency that initiated the study;

(2) the reason for the disqualification;
and

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1195

(3) that information about the
decision to set aside the disqualification will be available to the license
holder upon request without the consent of the background study subject.

(c) The background study subject must also
be informed that:

(1) the subject's fingerprints collected
for purposes of completing the background study under this chapter must not be
retained by the Department of Public Safety, Bureau of Criminal Apprehension,
or by the commissioner, but will be retained by the Federal Bureau of
Investigation;

(2) effective upon implementation of
NETStudy 2.0, the subject's photographic image will be retained by the
commissioner, and if the subject has provided the subject's Social Security
number for purposes of the background study, the photographic image will be
available to prospective employers and agencies initiating background studies
under this chapter to verify the identity of the subject of the background
study;

(3) the commissioner's authorized
fingerprint collection vendor shall, for purposes of verifying the identity of
the background study subject, be able to view the identifying information
entered into NETStudy 2.0 by the entity that initiated the background study,
but shall not retain the subject's fingerprints, photograph, or information
from NETStudy 2.0.The authorized
fingerprint collection vendor shall retain no more than the subject's name and
the date and time the subject's fingerprints were recorded and sent, only as
necessary for auditing and billing activities;

(4) the commissioner shall provide the
subject notice, as required in section 245C.17, subdivision 1, paragraph (a),
when an entity initiates a background study on the individual;

(5) the subject may request in writing a
report listing the entities that initiated a background study on the individual
as provided in section 245C.17, subdivision 1, paragraph (b);

(6) the subject may request in writing
that information used to complete the individual's background study in NETStudy
2.0 be destroyed if the requirements of section 245C.051, paragraph (a), are
met; and

(7) notwithstanding clause (6), the
commissioner shall destroy:

(i) the subject's photograph after a
period of two years when the requirements of section 245C.051, paragraph (c),
are met; and

(ii) any data collected on a subject under
this chapter after a period of two years following the individual's death as
provided in section 245C.051, paragraph (d).

(d) For background study subjects who
are younger than age 18, the privacy notice provided through NETStudy 2.0 shall
include a consent form that includes the information in paragraphs (b) and (c)
and requires the signature of a person who has legal responsibility for the
minor, including but not limited to a parent or legal guardian, to consent to
the minor subject's fingerprints and photograph being captured.

EFFECTIVE
DATE.This section is effective
the day following final enactment.

Subd. 5.Fingerprints
and photograph.(a) Before the
implementation of NETStudy 2.0, except as provided in paragraph (c), for any
background study completed under this chapter, when the commissioner has
reasonable cause to believe that further pertinent information may exist on the
subject of the background study, the subject shall provide the commissioner
with a set of classifiable fingerprints obtained from an authorized agency.

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1196

(b) Before the implementation
of NETStudy 2.0, for purposes of requiring fingerprints, the commissioner has
reasonable cause when, but not limited to, the:

(1) information from the Bureau of Criminal
Apprehension indicates that the subject is a multistate offender;

(2) information from the Bureau of Criminal
Apprehension indicates that multistate offender status is undetermined; or

(3) commissioner has received a report from
the subject or a third party indicating that the subject has a criminal history
in a jurisdiction other than Minnesota.

(c) Notwithstanding paragraph (d), for
background studies conducted by the commissioner for child foster care,
adoptions, or a transfer of permanent legal and physical custody of a child,
the subject of the background study, who is 18 years of age or older, shall
provide the commissioner with a set of classifiable fingerprints obtained from
an authorized agency.

(d) For background studies initiated on or
after the implementation of NETStudy 2.0, every subject of a background study
must provide the commissioner with a set of the background study subject's
classifiable fingerprints and photograph within 14 days of the initiation of
the background study in NETStudy 2.0.The photograph and fingerprints must be recorded at the same time by the
commissioner's authorized fingerprint collection vendor and sent to the
commissioner through the commissioner's secure data system described in section
245C.32, subdivision 1a, paragraph (b).The
fingerprints shall not be retained by the Department of Public Safety, Bureau
of Criminal Apprehension, or the commissioner, but will be retained by the
Federal Bureau of Investigation.The
commissioner's authorized fingerprint collection vendor shall, for purposes of
verifying the identity of the background study subject, be able to view the
identifying information entered into NETStudy 2.0 by the entity that initiated
the background study, but shall not retain the subject's fingerprints,
photograph, or information from NETStudy 2.0.The authorized fingerprint collection vendor shall retain no more than
the name and date and time the subject's fingerprints were recorded and sent,
only as necessary for auditing and billing activities.

(e) For background studies completed by
county agencies under this chapter for family child care services, any subject
of a background study who has resided in another state within the five years
preceding initiation of the background study must provide the county agency
with a set of the subject's classifiable fingerprints for purposes of obtaining
criminal history data from the National Criminal Records Repository.

(f) For background studies initiated on
or after the implementation of NETStudy 2.0:

(1) the subject must be under
continuous, direct supervision of the program that initiated the background
study when providing direct contact services, until a notice under section
245C.17 is received;

(2) the entity that initiated the
background study must be notified if seven days have elapsed and the background
study subject has not provided fingerprints and a photograph under paragraph
(d); and

(3) if a background study subject fails
to provide fingerprints and a photograph under paragraph (d), the commissioner
shall issue the entity that initiated the background study and the background
study subject a notice that the background study has not been completed and
that the subject must be removed from any position allowing direct contact or
access to persons served by the entity.

The commissioner may extend the time period for providing
fingerprints and a photograph if the background study subject or the entity
that initiated the background study shows good cause for failure to comply in a
timely manner, as determined by the commissioner.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

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1197

(i) individuals listed in section 245C.03,
subdivision 1, paragraph (a), who are ages 13 through 23 living in the
household where the licensed services will be provided; and

(ii) any other individual listed under
section 245C.03, subdivision 1, when there is reasonable cause; and

(3) information from the Bureau of Criminal
Apprehension.; and

(4) criminal history data from the
National Criminal Records Repository when the individual has resided in another
state within the five years preceding initiation of the background study.

(b) If the individual has not resided
in the county for less thanthe five years preceding
initiation of the background study, the study shall include the records
specified under paragraph (a) for the individual's previous county or
counties of residence for the past five years.

(c) Notwithstanding expungement by a court,
the county agency may consider information obtained under paragraph (a), clause
(3), unless the commissioner received notice of the petition for expungement
and the court order for expungement is directed specifically to the
commissioner.

EFFECTIVE
DATE.This section is
effective the day following final enactment.

Subd. 18d.Data
sharing with Department of Human Services; multiple identification cards.(a) The commissioner of public safety
shall, on a monthly basis, provide the commissioner of human services with the
first, middle, and last name, the address, date of birth, Social Security
number, driver's license or state identification card number, and all
photographs or electronically produced images of all applicants and holders
whose drivers' licenses and state identification cards have been canceled on
or after January 1, 2013, under section 171.14, paragraph (a), clause (2)
or (3), by the commissioner of public safety.After the initial data report has been provided by the commissioner of
public safety to the commissioner of human services under this paragraph,
subsequent reports shall only include
cancellations that occurred after the end date of the cancellations represented
in the previous data report.

(b) The commissioner of human services
shall compare the information provided under paragraph (a) with the
commissioner's data regarding recipients of all public assistance programs
managed by the Department of Human Services to determine whether any individual
with multiple identification cards issued by the Department of Public Safety
has illegally or improperly enrolled in any public assistance program managed
by the Department of Human Services.

(c) If the commissioner of human services
determines that an applicant or recipient has illegally or improperly enrolled
in any public assistance program, the commissioner shall provide all due
process protections to the individual before terminating the individual from
the program according to applicable statute and notifying the county attorney.

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1198

Subd. 18e.Data
sharing with the Department of Human Services; legal presence date.(a) The commissioner of public safety
shall, on a monthly basis, provide the commissioner of human services with the
first, middle, and last name, and address, date of birth, Social Security
number, and driver's license or state identification card number of all
applicants and holders of drivers' licenses and state identification cards
whose temporary legal presence date has expired and as a result the driver's
license or identification card has been accordingly canceled under section
171.14 by the commissioner of public safety.

(b) The commissioner of human services
shall use the information provided under paragraph (a) to determine whether the
eligibility of any recipients of public assistance programs managed by the
Department of Human Services has changed as a result of the status change in
the Department of Public Safety data.

(c) If the commissioner of human services
determines that a recipient has illegally or improperly received benefits from
any public assistance program, the commissioner shall provide all due process
protections to the individual before terminating the individual from the
program according to applicable statute and notifying the county attorney.

Subd. 25.Interagency
agreement for data sharing from commissioner of revenue.The commissioner may enter into an
interagency agreement with the commissioner of revenue to allow the Department
of Revenue to transmit electronically to the Department of Human Services
certain data on persons who applied for medical assistance or who are current
or former medical assistance recipients.If an interagency agreement is concluded, the Department of Revenue is
authorized to share the following data with the Department of Human Services:data from the personal or corporate filings
of the medical assistance applicant, recipient, or former recipient; and data
on the medical assistance applicant's, recipient's, or former recipient's
wages, earned and unearned income, assets, and business expenses filed with the
Department of Revenue.

Subd. 12b.Data
management.(a) In performing any of
the duties of this section as a lead investigative agency, the county social
service agency shall maintain appropriate records.Data collected by the county social service
agency under this section are welfare data under section 13.46.Notwithstanding section 13.46, subdivision 1,
paragraph (a), data under this paragraph that are inactive investigative data
on an individual who is a vendor of services are private data on individuals,
as defined in section 13.02.The
identity of the reporter may only be disclosed as provided in paragraph (c).

Data maintained by the common entry point
are confidential data on individuals or protected nonpublic data as defined in
section 13.02.Notwithstanding section
138.163, the common entry point shall maintain data for three calendar years
after date of receipt and then destroy the data unless otherwise directed by
federal requirements.

(b) The commissioners of health and human
services shall prepare an investigation memorandum for each report alleging
maltreatment investigated under this section.County social service agencies must maintain private data on individuals
but are not required to prepare an investigation memorandum.During an investigation by the commissioner
of health or the commissioner of human services, data collected under this
section are confidential data on individuals or protected nonpublic data as
defined in section 13.02.Upon
completion of the investigation, the data are classified as provided in clauses
(1) to (3) and paragraph (c).

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1199

(1) The investigation
memorandum must contain the following data, which are public:

(i) the name of the facility investigated;

(ii) a statement of the nature of the
alleged maltreatment;

(iii) pertinent information obtained from
medical or other records reviewed;

(iv) the identity of the investigator;

(v) a summary of the investigation's
findings;

(vi) statement of whether the report was
found to be substantiated, inconclusive, false, or that no determination will
be made;

(vii) a statement of any action taken by
the facility;

(viii) a statement of any action taken by
the lead investigative agency; and

(ix) when a lead investigative agency's
determination has substantiated maltreatment, a statement of whether an
individual, individuals, or a facility were responsible for the substantiated
maltreatment, if known.

The investigation memorandum must be
written in a manner which protects the identity of the reporter and of the
vulnerable adult and may not contain the names or, to the extent possible, data
on individuals or private data listed in clause (2).

(2) Data on individuals collected and
maintained in the investigation memorandum are private data, including:

(i) the name of the vulnerable adult;

(ii) the identity of the individual
alleged to be the perpetrator;

(iii) the identity of the individual
substantiated as the perpetrator; and

(iv) the identity of all individuals
interviewed as part of the investigation.

(3) Other data on individuals maintained
as part of an investigation under this section are private data on individuals
upon completion of the investigation.

(c) After the assessment or investigation
is completed, the name of the reporter must be confidential.The subject of the report may compel
disclosure of the name of the reporter only with the consent of the reporter or
upon a written finding by a court that the report was false and there is
evidence that the report was made in bad faith.This subdivision does not alter disclosure responsibilities or
obligations under the Rules of Criminal Procedure, except that where the
identity of the reporter is relevant to a criminal prosecution, the district
court shall do an in-camera review prior to determining whether to order
disclosure of the identity of the reporter.

(d) Notwithstanding section 138.163, data
maintained under this section by the commissioners of health and human services
must be maintained under the following schedule and then destroyed unless
otherwise directed by federal requirements:

(1) data from reports determined to be
false, maintained for three years after the finding was made;

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1200

(2) data from reports
determined to be inconclusive, maintained for four years after the finding was
made;

(3) data from reports determined to be
substantiated, maintained for seven years after the finding was made; and

(4) data from reports which were not
investigated by a lead investigative agency and for which there is no final
disposition, maintained for three years from the date of the report.

(e) The commissioners of health and human
services shall annually publish on their Web sites the number and type of
reports of alleged maltreatment involving licensed facilities reported under
this section, the number of those requiring investigation under this section,
and the resolution of those investigations.On a biennial basis, the commissioners of health and human services
shall jointly report the following information to the legislature and the
governor:

(1) the number and type of reports of
alleged maltreatment involving licensed facilities reported under this section,
the number of those requiring investigations under this section, the resolution
of those investigations, and which of the two lead agencies was responsible;

(2) trends about types of substantiated
maltreatment found in the reporting period;

(3) if there are upward trends for types
of maltreatment substantiated, recommendations for addressing and responding to
them;

(4) efforts undertaken or recommended to
improve the protection of vulnerable adults;

(5) whether and where backlogs of cases
result in a failure to conform with statutory time frames and recommendations
for reducing backlogs if applicable;

(6) recommended changes to statutes
affecting the protection of vulnerable adults; and

(7) any other information that is relevant
to the report trends and findings.

(f) Each lead investigative agency must
have a record retention policy.

(g) The common entry point, lead
investigative agencies, county agencies or their designees, prosecuting
authorities, and law enforcement agencies, state agencies, and tribes
may exchange not public data, as defined in section 13.02, if the agency or
authority requestingproviding the data determines that the data
are pertinent and necessary to the requesting agency or authority for
the provision of protective services or in initiating, furthering, or
completing an investigation under this section.Data collected under this section must be made available to prosecuting
authorities and law enforcement officials, local county agencies, and licensing
agencies investigating the alleged maltreatment under this section.The lead investigative agency shall exchange
not public data with the vulnerable adult maltreatment review panel established
in section 256.021 if the data are pertinent and necessary for a review
requested under that section.Notwithstanding
section 138.17, upon completion of the review, not public data received by the
review panel must be destroyed.

(h) Each lead investigative agency shall
keep records of the length of time it takes to complete its investigations.

(i) A lead investigative agency may notify
other affected parties and their authorized representative if the lead
investigative agency has reason to believe maltreatment has occurred and
determines the information will safeguard the well-being of the affected
parties or dispel widespread rumor or unrest in the affected facility.

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(j) Under any notification provision
of this section, where federal law specifically prohibits the disclosure of
patient identifying information, a lead investigative agency may not provide
any notice unless the vulnerable adult has consented to disclosure in a manner
which conforms to federal requirements."

Amend the title as follows:

Page 1, line 2, after "data" insert
"and background study"

Correct the title numbers accordingly

With the recommendation that when so
amended the bill be re-referred to the Committee on Civil Law and Data
Practices.

The report was adopted.

Hoppe from the
Committee on Commerce and Regulatory Reform to which was referred:

Subd. 11.Licensing
orders; grounds; reapplication.(a)
The commissioner may deny an application for a permit, license, registration,
or certificate if the applicant does not meet or fails to maintain the minimum
qualifications for holding the permit, license, registration, or certificate,
or has any unresolved violations or unpaid fees or monetary penalties related
to the activity for which the permit, license, registration, or certificate has
been applied for or was issued.

(b) The commissioner may deny, suspend,
limit, place conditions on, or revoke a person's permit, license, registration,
or certificate, or censure the person holding or acting as a qualifying
person for the permit, license, registration, or certificate, if the
commissioner finds that the person:

(1) committed one or more violations of the
applicable law;

(2) submitted false or misleading
information to the state in connection with activities for which the permit,
license, registration, or certificate was issued, or in connection with the
application for the permit, license, registration, or certificate;

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(3) allowed the alteration or
use of the person's own permit, license, registration, or certificate by
another person;

(4) within the previous five years, was
convicted of a crime in connection with activities for which the permit,
license, registration, or certificate was issued;

(5) violated:(i) a final administrative order issued under subdivision 7, (ii) a
final stop order issued under subdivision 10, (iii) injunctive relief issued
under subdivision 9, or (iv) a consent order or final order of the
commissioner;

(6) failed to cooperate with a commissioner's
request to give testimony, to produce documents, things, apparatus, devices,
equipment, or materials, or to access property under subdivision 2;

(7) retaliated in any manner against any
employee or person who is questioned by, cooperates with, or provides
information to the commissioner or an employee or agent authorized by the
commissioner who seeks access to property or things under subdivision 2;

(8) engaged in any fraudulent, deceptive, or
dishonest act or practice; or

(9) performed work in connection with the
permit, license, registration, or certificate or conducted the person's affairs
in a manner that demonstrates incompetence, untrustworthiness, or financial
irresponsibility.

(c) If the commissioner revokes or denies a
person's permit, license, registration, or certificate under paragraph (b), the
person is prohibited from reapplying for the same type of permit, license,
registration, or certificate for at least two years after the effective date of
the revocation or denial.The
commissioner may, as a condition of reapplication, require the person to obtain
a bond or comply with additional reasonable conditions the commissioner
considers necessary to protect the public.

(d) If a permit, license, registration, or
certificate expires, or is surrendered, withdrawn, or terminated, or otherwise
becomes ineffective, the commissioner may institute a proceeding under this
subdivision within two years after the permit, license, registration, or
certificate was last effective and enter a revocation or suspension order as of
the last date on which the permit, license, registration, or certificate was in
effect."

Page 13, delete section 18

Renumber the sections in sequence and
correct the internal references

Amend the title as follows:

Page 1, line 4, delete "authorizing
rulemaking;"

Correct the title numbers accordingly

With the recommendation that when so
amended the bill be re-referred to the Committee on Job Growth and Energy
Affordability Policy and Finance.

The report was adopted.

Hoppe from the
Committee on Commerce and Regulatory Reform to which was referred:

Subd. 3a.Gratuities;
credit cards or charges.(a)
Gratuities presented to an employee via inclusion on a debit, charge, or credit
card shall be credited to that pay period in which they are received by the
employee and for which they appear on the employee's tip statement.

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(b) Where a gratuity is given
by a customer through a debit, charge, or credit card, the full amount of
gratuity must be allowed the employee.

Subdivision 1.Rest
breaks.An employer must allow each
employee adequate time from work within each four consecutive hours of work
to utilize the nearest convenient restrooma rest break of at least ten
minutes per four consecutive hours of work.Time spent by employees on rest breaks must be counted as hours worked.

Subdivision 1.Meal
break.An employer must permit
each employee who is working for eight or more consecutive hours sufficient
time to eat a meal.An employer
must permit each employee who works for five or more consecutive hours a meal
break of at least 30 minutes, except that if the work period for the day is six
consecutive hours or less, the employee and employer may waive the meal break
by mutual consent.

Subd. 7.Employer
liability.(a) If an employer
is found by the commissioner to have violated a section identified in
subdivision 4, or any rule adopted under section 177.28, and the commissioner
issues an order to comply, the commissioner shall order the employer to cease
and desist from engaging in the violative practice and to take such affirmative
steps that in the judgment of the commissioner will effectuate the purposes of
the section or rule violated. The
commissioner shall order the employer to pay to the aggrieved parties back pay,
gratuities, and compensatory damages, and predictability pay under
section 181.99, less any amount actually paid to the employee by the
employer, and for an additional equal amount as liquidated damages.equal to twice the unpaid wages, overtime
pay, gratuities, and predictability pay under section 181.99.In addition, the commissioner may order the
employer to pay civil penalties of up to $1,000 per violation.The commissioner must consider the factors
described in section 14.045, subdivision 3, paragraph (a), when assessing these
civil penalties.

(b) Any employer who is found by
the commissioner to have repeatedly or willfully violated a section or sections
identified in subdivision 4 shall be subject to a civil penalty of up to $1,000at least $5,000, but no more than $10,000 for each violation for each
employee.The commissioner must
consider the factors described in section 14.045, including those contained in
section 14.045, subdivision 3, paragraph (b), when assessing these civil
penalties.

(c) In determining the amount of a
civil penalty under this subdivision, the appropriateness of such penalty to
the size of the employer's business and the gravity of the violation shall be
considered.In addition, the
commissioner may order the employer to reimburse the department and the
attorney general for all appropriate litigation and hearing costs expended in
preparation for and in conducting the contested case proceeding, unless payment
of costs would impose extreme financial hardship on the employer.If the employer is able to establish extreme
financial hardship, then the commissioner may order the employer to pay a
percentage of the total costs that will not cause extreme financial hardship.Costs include but are not limited to the
costs of services rendered by the attorney general, private attorneys if
engaged by the department, administrative law judges, court reporters, and
expert witnesses as well as the cost of transcripts.Interest shall accrue on, and be added to,
the unpaid balance of a commissioner's order from the date the order is signed
by the commissioner until it is paid, at an annual rate provided in section
549.09, subdivision 1, paragraph (c).The
commissioner may establish escrow accounts for purposes of distributing
damages.

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(d) In addition to paragraph
(c), when the commissioner finds that an employer has repeatedly or willfully
violated a section or sections identified in subdivision 4, the commissioner
shall take the following actions:

(1) the commissioner shall identify any
state, county, or municipal agency, or municipality as defined in section
466.01, subdivision 1, that has issued licenses or permits necessary for the
employer to conduct its business;

(2) the commissioner shall order any
identified state, county, or municipal agency, or municipality as defined in section
466.01, subdivision 1, to immediately revoke or suspend any such licenses or
permits until the commissioner determines that the employer has remedied all
violations.

(e) The commissioner has the power to
take the actions described in paragraph (d), notwithstanding any conflicting
statute, rule, ordinance, or other regulation.A state, county, or municipal agency, or municipality as defined in
section 466.01, subdivision 1, has the power to comply with an order of the
commissioner under paragraph (d), notwithstanding any conflicting statute,
rule, ordinance, or other regulation.

Subd. 8.Court
actions; suits brought by private parties.An employee may bring a civil action seeking redress for a violation
or violations of sections 177.21 to 177.44 directly to district court.An employer who pays an employee less than
the wages and overtime compensation to which the employee is entitled under
sections 177.21 to 177.44 is liable to the employee for the full amount of the
wages, gratuities, and overtime compensation, less any amount the employer is
able to establish was actually paid to the employee and for an additional equal
amount as liquidated damagesequal to twice the unpaid wages,
overtime pay, and gratuities.In
addition, in an action under this subdivision the employee may seek damages and
other appropriate relief provided by subdivision 7 and otherwise provided by
law.An agreement between the employee
and the employer to work for less than the applicable wage is not a defense to
the action.

Subd. 9.District
court jurisdiction.Any action
brought under subdivision 8 may be filed in the district court of the county
wherein a violation or violations of sections 177.21 to 177.44 are
alleged to have been committed, where the respondent resides or has a principal
place of business, or any other court of competent jurisdiction. The action may be brought by one or more
employees.An employee may choose to
have a person or organization bring an action on the employee's behalf.In such a case, the person or organization
has the power to settle or adjust the claim.

Subd. 11.Employee
complaints.(a) Any person or
organization may file an administrative complaint or an informal complaint with
the department claiming an employer has violated sections 177.21 to 177.44 as
to any employee or person.

(b) The commissioner shall allow for
anonymous informal and administrative complaints.The commissioner shall take steps to keep the
identity of a complaining employee or other individual confidential if that
employee or individual so chooses.

(c) If the commissioner investigates a
complaint against an employer and the commissioner chooses to review employer
records related to the complaint, the commissioner shall review the relevant
records of all employees at that work site in order to:

(1) maintain the employee's anonymity;
and

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(2) determine whether a pattern
of violations has occurred.

(d) Any information regarding a
complaint under this subdivision is excluded from any requirements for
disclosure under the Minnesota Government Data Practices Act.

Subd. 12.Wage
bonds.(a) If, upon
investigation by the commissioner of any complaint under sections 177.21 to
177.44, the commissioner finds that an employer is not paying wages due its
employees, the commissioner may require the employer to give the department a
bond, with sufficient surety, in an amount that the commissioner deems
reasonable and adequate under the circumstances.Forfeiture of the bond may be conditioned on
the employer continuing to conduct its business and paying its employees in
accordance with all laws for a definite period not to exceed six months.

(b) If, within ten days after the
commissioner demands such a bond, the employer fails to provide it, the
commissioner may bring an action against the employer, in any court of
competent jurisdiction, to compel the employer to provide the bond or to cease
conducting business until the employer has done so.The employer shall have the burden of proving
the amount of the bond to be excessive.

Sec. 10.[177.311]
GRANTS TO COMMUNITY ORGANIZATIONS.

The commissioner must make grants to
community organizations for the purpose of outreach to and education for
employees affected by sections 177.21 to 177.44 regarding employee rights under
those sections.The community-based
organizations must be selected based on their experience, capacity, and
relationships in high‑violation industries.The work under any such grant may include the
creation and administration of a statewide worker hotline.

Sec. 11.[177.315]
EMPLOYER RETALIATION.

No employer shall discharge or take any
other adverse action against any person in retaliation for asserting any claim
or right under sections 177.21 to 177.44, for assisting any other person in
doing so, or for informing any person about the person's rights under sections
177.21 to 177.44.An employer taking any
adverse action against a person within one year of a person's engaging in the
foregoing activities shall raise a presumption that such action was
retaliation, which may be rebutted by clear and convincing evidence that the
action was taken for other permissible reasons.

Sec. 12.Minnesota Statutes 2014, section 177.32, is
amended to read:

177.32
PENALTIES.

Subdivision 1.MisdemeanorsCrimes.(a) An
employer who does any of the following is guilty of a misdemeanor:

(1) hinders or delays the commissioner in
the performance of duties required under sections 177.21 to 177.435;

(2) refuses to admit the commissioner to
the place of business or employment of the employer, as required by section
177.27, subdivision 1;

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(5) refuses to make any record
available, or to furnish a sworn statement of the record or any other
information as required by section 177.27;

(6) repeatedly fails to post a summary of
sections 177.21 to 177.44 or a copy or summary of the applicable rules as
required by section 177.31;

(7) pays or agrees to pay wages at a rate
less than the rate required under sections 177.21 to 177.44, and the total
of any such wages in relation to all affected employees is less than $5,000;

(8) refuses to allow adequate time from
work as required by section 177.253; or

(9) otherwise violates any provision of
sections 177.21 to 177.44.

(b) An employer is guilty of a gross
misdemeanor if the employer fails to pay any wages due to an employee or
employees under sections 177.21 to 177.44, and the total of any such wages in
relation to all affected employees is $5,000 or more.

(c) An employer who is convicted of a
crime under paragraph (a) or (b) and is subsequently convicted of a second
crime under paragraph (a) or (b) within two years of the first conviction is
guilty of a felony.

Subd. 2.FineFines.An employer shall be
fined not less than $700$5,000 nor more than $3,000$10,000
if convicted of discharging or otherwise discriminating against any employee
because:

(1) the employee has complained to the
employer or to the department that wages have not been paid in accordance with
sections 177.21 to 177.435;

(2) the employee has instituted or will
institute a proceeding under or related to sections 177.21 to 177.435; or

(3) the employee has testified or will
testify in any proceeding.

Sec. 13.[177.321]
PENALTIES; SPECIAL ACCOUNT.

All civil penalties collected under
sections 177.21 to 177.44, must be deposited in the state treasury and credited
to a special account.Money in the
account is annually appropriated to the commissioner of labor and industry to
administer sections 177.311 and 181.9436.

Sec. 14.[181.724]
CONTRACTS FOR LABOR OR SERVICES.

Subdivision 1.Contract;
insufficient funds.A person
or entity shall not enter into a contract or agreement for labor or services
where the person or entity knows or should know that the contract or agreement
does not include funds sufficient to allow the contractor to comply with all
applicable local, state, and federal laws or regulations governing the labor or
services to be provided.

Subd. 2.Rebuttable
presumption.There is a
rebuttable presumption affecting the burden of proof that there has been no
violation of subdivision 1 where the contract or agreement with a contractor
meets all of the requirements in subdivision 4.

Subd. 3.Exclusions.Subdivision 1 does not apply to a
person or entity who executes a collective bargaining agreement covering the
workers employed under the contract or agreement, or to a person who enters
into a contract or agreement for labor or services to be performed on the
person's home residence, provided that a family member resides in the residence
or residences for which the labor or services are to be performed for at least
part of the year.

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Subd. 4.Written
contract; provisions.To meet
the requirements of subdivision 2, a contract or agreement with a contractor
for labor or services shall be in writing, in a single document, and contain
all of the following provisions, in addition to any other provisions that may
be required by the commissioner:

(1) the name, address, and telephone
number of the person or entity and the contractor through whom the labor or
services are to be provided;

(2) a description of the labor or
services to be provided and a statement of when those services are to be
commenced and completed;

(3) the employer identification number
for state tax purposes of the contractor;

(4) the workers' compensation insurance
policy number and the name, address, and telephone number of the contractor;

(5) the vehicle identification number
of any vehicle that is owned by the contractor and used for transportation in
connection with any service provided pursuant to the contract or agreement, the
number of the vehicle liability insurance policy that covers the vehicle, and
the name, address, and telephone number of the insurance carrier;

(6) the address of any real property to
be used to house workers in connection with the contract or agreement;

(7) the total number of workers to be
employed under the contract or agreement, the total amount of all wages to be
paid, and the date or dates when those wages are to be paid;

(8) the amount of the commission or
other payment made to the contractor for services under the contract or
agreement;

(9) the total number of persons who
will be utilized under the contract or agreement as independent contractors,
along with a list of the current local, state, and federal contractor license
identification numbers that the independent contractors are required to have
under local, state, or federal laws or regulations; and

(10) the signatures of all parties, and
the date the contract or agreement was signed.

Subd. 5.Material
changes.(a) To qualify for
the rebuttable presumption in subdivision 2, a material change to the terms and
conditions of a contract or agreement between a person or entity and a
contractor must be in writing, in a single document, and contain all of the
provisions listed in subdivision 4 that are affected by the change.

(b) If a provision required to be
contained in a contract or agreement under subdivision 4, clause (7) or (9), is
unknown at the time the contract or agreement is executed, the best estimate
available at that time is sufficient to satisfy the requirements of subdivision
4.If an estimate is used in place of
actual figures, the parties to the contract or agreement have a continuing duty
to ascertain the information required under subdivision 4, clause (7) or (9),
and to reduce that information to writing according to the requirements of
paragraph (a) once that information becomes known.

Subd. 6.Written
contract; commissioner review.A
person or entity who enters into a contract or agreement referred to in
subdivision 4 or 5 shall keep a copy of the written contract or agreement for a
period of not less than four years following the termination of the contract or
agreement.Upon the request of the
commissioner of labor and industry, any person or entity who enters into the
contract or agreement shall provide to the commissioner a copy of the
provisions of the contract or agreement, and any other documentation, related
to subdivision 4, clauses (1) to (10).Documents
obtained under this section are exempt from disclosure under the Minnesota
Government Data Practices Act, chapter 13.

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Subd. 7.Penalties.(a) An employee aggrieved by a
violation of subdivision 1 may file an action for damages to recover the
greater of all actual damages or $250 per employee per violation for an initial
violation and $1,000 per employee for each subsequent violation, and, upon
prevailing in an action brought under this section, may recover costs and
reasonable attorney fees.An action
under this section shall not be maintained unless it is pleaded and proved that
an employee was injured as a result of a violation of a labor law or regulation
in connection with the performance of the contract or agreement.

(b) An employee aggrieved by a
violation of subdivision 1 may also bring an action for injunctive relief and,
upon prevailing, may recover costs and reasonable attorney fees.

Subd. 8.Know
or should know; definition.(a)
The term "know" as used in this section includes the knowledge,
arising from familiarity with the normal facts and circumstances of the
business activity engaged in, that the contract or agreement does not include
funds sufficient to allow the contractor to comply with applicable laws.

(b) The phrase "should know"
as used in this section includes the knowledge of any additional facts or
information that would make a reasonably prudent person undertake to inquire
whether, taken together, the contract or agreement contains sufficient funds to
allow the contractor to comply with applicable laws.

(c) A failure by a person or entity to
request or obtain any information from the contractor that is required by any
applicable statute, or by the contract or agreement between them, constitutes
knowledge of that information for purposes of this section.

Sec. 15.[181.915]
EMPLOYER STATEMENT TO EMPLOYEES.

An employer must provide each newly
hired employee, before the employee begins the employee's duties, and each
current employee annually, a written statement, in English and in the principal
language of the employee, describing the terms and conditions of the employee's
employment.The statement must include,
but is not limited to, the following:

(1) the full name, mailing address, and
phone number of the employer;

(2) the federal and state tax
identification numbers of each employer, but not including Social Security
numbers of employers who are individuals;

(3) the place or places of employment;

(4) the hours of work per day and
number of days per week that the employee will be required to work;

(5) the wages the employer will pay the
employee per hour, day, week, or other measure and the frequency and nature of
payment of those wages;

(6) the anticipated period of
employment;

(7) the circumstances and rate for
which an employee will be paid a premium for working in excess of a set number
of hours per day, week, or month; or for working on designated nights,
weekends, or holidays;

(8) a description of any provision to
the employee by the employer, how long such provision will be provided by the
employer, and any costs for such provision the employer will require the
employee to pay, including, but not limited to:

(i) transportation to and from work;

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(ii) housing;

(iii) health insurance or health care;

(iv) any paid or unpaid leave or
holidays;

(v) pension or retirement benefits;

(vi) personal protective equipment
required for the work;

(vii) workers' compensation policies,
including information about the employer insurance policy or policies, and
rules regarding the reporting of accidents or injuries; and

(viii) unemployment compensation;

(9) the nature of the work to be
performed by the employee;

(10) information regarding any existing
strike, lockout, or concerted work stoppage, slowdown, or interruption of
operations at the place of employment; and

(11) information regarding any known
local, state, or federal investigations into the employer's health or safety
practices over the prior five years, and the outcome of such investigations, if
known.

Subdivision 1.Six-year
limitation.Except where the Uniform
Commercial Code otherwise prescribes, the following actions shall be commenced
within six years:

(1) upon a contract or other obligation,
express or implied, as to which no other limitation is expressly prescribed;

(2) upon a liability created by statute,
other than those arising upon a penalty or forfeiture or where a shorter period
is provided by section 541.07;

(3) for a trespass upon real estate;

(4) for taking, detaining, or injuring
personal property, including actions for the specific recovery thereof;

(5) for criminal conversation, or for any
other injury to the person or rights of another, not arising on contract, and
not hereinafter enumerated;

(6) for relief on the ground of fraud, in
which case the cause of action shall not be deemed to have accrued until the
discovery by the aggrieved party of the facts constituting the fraud;

(7) to enforce a trust or compel a trustee
to account, where the trustee has neglected to discharge the trust, or claims
to have fully performed it, or has repudiated the trust relation;

(8) against sureties upon the official
bond of any public officer, whether of the state or of any county, town, school
district, or a municipality therein; in which case the limitation shall not
begin to run until the term of such officer for which the bond was given shall
have expired;

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(9) for damages caused by a
dam, used for commercial purposes; or

(10) for assault, battery, false
imprisonment, or other tort resulting in personal injury, if the conduct that
gives rise to the cause of action also constitutes domestic abuse as defined in
section 518B.01.;

(11) for the recovery of wages,
overtime or damages, fees, or penalties accruing under any federal or state law
respecting the payment of wages, overtime or damages, fees, or penalties.The term "wages" means all
remuneration for services or employment, including commissions, gratuities, and
bonuses and the cash value of all remuneration in any medium other than cash,
where the relationship of master and servant exists and the term
"damages" means single, double, or treble damages, accorded by any
statutory cause of action whatsoever and whether or not the relationship of
master and servant exists.

Sec. 17.Minnesota Statutes 2014, section 541.07, is
amended to read:

541.07
TWO- OR THREE-YEAR LIMITATIONS.

Except where the Uniform Commercial Code,
this section, section 541.05, 541.073, 541.076, or 604.205 otherwise
prescribes, the following actions shall be commenced within two years:

(1) for libel, slander, assault, battery,
false imprisonment, or other tort resulting in personal injury, and all actions
against veterinarians as defined in chapter 156, for malpractice, error,
mistake, or failure to cure, whether based on contract or tort; provided a
counterclaim may be pleaded as a defense to any action for services brought by
a veterinarian after the limitations period if it was the property of the party
pleading it at the time it became barred and was not barred at the time the
claim sued on originated, but no judgment thereof except for costs can be
rendered in favor of the party so pleading it;

(2) upon a statute for a penalty or
forfeiture, except as provided in sections 541.074 and 541.075;

(3) for damages caused by a dam, other
than a dam used for commercial purposes; but as against one holding under the
preemption or homestead laws, the limitations shall not begin to run until a
patent has been issued for the land so damaged;

(4) against a master for breach of an
indenture of apprenticeship; the limitation runs from the expiration of the
term of service;

(5) for the recovery of wages or
overtime or damages, fees, or penalties accruing under any federal or state law
respecting the payment of wages or overtime or damages, fees, or penalties
except, that if the employer fails to submit payroll records by a specified
date upon request of the Department of Labor and Industry or if the nonpayment
is willful and not the result of mistake or inadvertence, the limitation is
three years.(The term "wages"
means all remuneration for services or employment, including commissions and
bonuses and the cash value of all remuneration in any medium other than cash,
where the relationship of master and servant exists and the term
"damages" means single, double, or treble damages, accorded by any
statutory cause of action whatsoever and whether or not the relationship of
master and servant exists);

(6)(5) for damages caused
by the establishment of a street or highway grade or a change in the originally
established grade; and

(7)(6) against the person
who applies the pesticide for injury or damage to property resulting from the
application, but not the manufacture or sale, of a pesticide.

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Sec. 18.REVISOR'S
INSTRUCTION.

The revisor of statutes shall make any
necessary cross-reference changes arising from renumbering in this act,
including any grammatical changes to preserve sentence structure.

Subdivision 1.Twelve-week
leave; pregnancy, birth, or adoptionparenting, and caregiver leave.(a) An employer must grant an unpaid
leave of absence to an employee who is:

(1) a biological or, adoptive,
or foster parent in conjunction with the birth or, adoption,
or placement through foster care of a child; or

(2) a
female employee for prenatal care, or incapacity due to pregnancy, childbirth,
or related health conditions; or

(3) caring for a family member who has
a serious health condition.

(b) The length of the leave shall be
determined by the employee, but must not exceed 12 weeks, unless agreed to by
the employer.

Subd. 2.Start
of leave.The leave shall begin at a
time requested by the employee.The employer
may adopt reasonable policies governing the timing of requests for unpaid leave
and may require an employee who plans to take a leave under this section to
give the employer reasonable notice of the date the leave shall commence and
the estimated duration of the leave.For
leave taken under subdivision 1, paragraph (a), clause (1), the leave must
begin within 12 months of the birth or adoption; except that, in the case where
the child must remain in the hospital longer than the mother, the leave must
begin within 12 months after the child leaves the hospital.

Subd. 3.No
employer retribution.An employer
shall not retaliate against an employee for requesting or obtaining a leave of
absence as provided by this section.

Subd. 4.Continued
insurance.The employer must
continue to make coverage available to the employee while on leave of absence
under any group insurance policy, group subscriber contract, or health care
plan for the employee and any dependents.Nothing in this section requires the employer to pay the costs of the
insurance or health care while the employee is on leave of absence.

Subd. 5.Confidentiality
and nondisclosure.If, in
conjunction with a leave under this section, an employer possesses health or
medical information regarding an employee or an employee's family member, the
employer must treat such information as confidential and not disclose the
information except with the permission of the employee.

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Subdivision 1.Definitions.(a) For the purposes of this section,
the terms defined in this subdivision have the meanings given them.

(b) "Health care provider"
has the same meaning as set forth in the FMLA.

(c) "Serious health
condition" has the same meaning as set forth in the FMLA.

(d) "Median county family
income" means the median family income under the American Community Survey
5‑Year Estimates for the most recent year available in the county where
the employee resides.

Subd. 2.Benefits;
application and eligibility.(a)
Beginning one year after the date on which the commissioner starts collecting
premiums pursuant to subdivision 6, benefits under this section must be paid to
an employee who:

(1) is eligible for leave under section
181.941; and

(2) files an application for benefits
in the manner required by the commissioner.

(b) In addition to the requirements of
paragraph (a), the commissioner may require:

(1) an employee who files a claim for
benefits to attest that the employee has requested leave from his or her
employer under section 181.941; or

(2) submit a certification from the
health care provider providing care to the employee's family member supporting
the claim that the employee's family member has a serious health condition,
provided the employee is filing an application for benefits related to leave
under section 181.941, subdivision 1, paragraph (a), clause (3), or the FMLA.

Subd. 3.Duration
of benefits; payment intervals.(a)
The maximum amount of time an employee may receive benefits under this section
is six weeks.

(b) Failure to submit an application
for benefits in the manner and form required by the commissioner does not
automatically invalidate an employee's eligibility for benefits, but the
commissioner is not required to pay benefits for a period of more than two
weeks before the date on which an employee files an application for benefits conforming
with the commissioner's requirements.

(c) The commissioner must make the
first payment of benefits to an eligible employee within two weeks after the
employee files an application of benefits conforming to the commissioner's
requirements.The commissioner must make
later payments biweekly.

(1) for an employee whose yearly
earnings are not more than 27 percent of the median county family income, the
commissioner must pay weekly benefits in an amount equal to 95 percent of the
employee's weekly wage;

(2) for an employee whose yearly
earnings are more than 27 percent, but not more than 45 percent, of the median
county family income, the commissioner must pay weekly benefits in an amount
equal to 90 percent of the employee's weekly wage;

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(3) for an employee whose
yearly earnings are more than 45 percent, but not more than 65 percent, of the
median county family income, the commissioner must pay weekly benefits in an
amount equal to 85 percent of the employee's weekly wage;

(4) for an employee whose yearly
earnings are equal to or more than 65 percent of the median county family
income, the commissioner must pay weekly benefits in an amount equal to 66
percent of the eligible individual's weekly wage.

(c) Beginning two years after the date
on which the commissioner starts collecting premiums pursuant to subdivision 6,
the commissioner must annually adjust the maximum weekly benefit amount to reflect
changes in the United States Bureau of Labor Statistics consumer price index
for the Minneapolis-St. Paul consolidated metropolitan statistical area
for all urban consumers, all goods, or its successor index.

(d) Benefits are not payable for less than
one day of leave taken in one work week.

Subd. 5.Pregnancy,
parenting, and caregiver leave insurance account.A pregnancy, parenting, and caregiver
leave insurance account is created in the special revenue fund.Money in the account is annually appropriated
to the Department of Labor and Industry and does not lapse.The commissioner shall manage and administer
the account in accordance with this section.

Subd. 6.Employee
and employer premiums.(a)
Starting on a date determined by the commissioner but no later than one year
after the effective date of this section, every employee employed by an
employer must pay a premium equal to 0.1 percent of the employee's yearly wages
to fund the program, but the maximum annual premium charged to an employee must
not exceed $78 per year.The premium is
assessed on the first $78,000 of wages earned in a calendar year.

(b) Starting on a date determined by
the commissioner but no later than one year after the effective date of this
section, every employer must pay a premium equal to the total of premiums paid
by the employer's employees.

(c) Each employer must collect the
premium amount from each employee as a payroll deduction from the employee's
wages each payroll period and shall remit the premium amount, along with the
matching employer premium, to the commissioner, who must send the premiums to
the Department of Management and Budget for deposit in the pregnancy,
parenting, and caregiver leave insurance account in the special revenue fund.

(d) Starting two years after the date
on which the commissioner begins collecting premiums pursuant to this
subdivision, the commissioner must annually adjust the maximum annual premium
amount and the amount of annual income on which the premium is assessed to
reflect changes in the United States Bureau of Labor Statistics consumer price
index for the Minneapolis-St. Paul consolidated metropolitan statistical
area for all urban consumers, all goods, or its successor index.

Subd. 7.Disqualification
from benefits; erroneous payments.(a)
An employee must not receive benefits under this section for one year if the
individual willfully makes a false statement or misrepresentation regarding a
material fact, or willfully fails to report a material fact, to obtain benefits
under this section.

(b) If benefits under this section are
paid erroneously or as a result of a willful misrepresentation or omission, or
if a claim for benefits under this section is rejected after benefits are paid,
the commissioner may seek repayment of benefits from the recipient.

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Subd. 8.Federal
taxation of benefits.(a) If
the Internal Revenue Service determines that benefits under this section are
subject to federal income tax, the commissioner must advise an individual
filing a claim for benefits, at the time of filing, that:

(1) the Internal Revenue Service has
determined that benefits are subject to federal income tax;

(2) requirements exist pertaining to
estimated tax payments;

(3) the employee may elect to have
federal income tax deducted and withheld from the individual's payment of
benefits in the amount specified in the federal Internal Revenue Code; and

(4) the employee may change a
previously elected withholding status.

(b) Amounts deducted and withheld from
benefits under this subdivision must remain in the pregnancy, parenting, and
caregiver leave insurance account in the special revenue fund until transferred
to the federal taxing authority as payment of income tax.

The commissioner must follow all
procedures specified by the Internal Revenue Service relating to deducting and
withholding income tax.

Subd. 9.Confidentiality
and nondisclosure.If, in
conjunction with a leave under this section, an employer possesses health or
medical information regarding an employee or an employee's family member, the
employer must treat such information as confidential and not disclose the
information except with the permission of the employee.

Sec. 3.Minnesota Statutes 2014, section 181.943, is
amended to read:

181.943
RELATIONSHIP TO OTHER LEAVE.

(a) The length of leave provided under
section 181.941 may be reduced by any period of:

(1) paid parental, disability, personal,
medical, or sick leave, or accrued vacation provided by the employer so that
the total leave does not exceed 12 weeks, unless agreed to by the employer; or

(2) leave taken for the same purpose by
the employee under United States Code, title 29, chapter 28the FMLA.

(b) Nothing in sections 181.940 to 181.943
prevents any employer from providing leave benefits in addition to those
provided in sections 181.940 to 181.944 or otherwise affects an employee's
rights with respect to any other employment benefit.

(c) Nothing in this section shall be
construed to diminish an employee's entitlement to benefits under section
181.9411.

(d) Nothing in sections 181.940 to
181.944 shall be construed to limit the right of parties to a collective
bargaining agreement to bargain and agree with respect to leave policies or to
diminish the obligation of an employer to comply with any contract, collective
bargaining agreement, or any employment benefit program or plan that meets or
exceeds, and does not otherwise conflict with, the minimum standards and
requirements provided in sections 181.940 to 181.944.

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Sec. 4.Minnesota Statutes 2014, section 181.9436, is
amended to read:

181.9436
POSTING OF LAWNOTICE TO AFFECTED EMPLOYEES.

Subdivision 1.Poster.The Division of Labor Standards and
Apprenticeship shall develop, with the assistance of interested business and
community organizations, an educational poster stating employees' rights under
sections 181.940 to 181.9436181.9441.The department shall make the poster
available, upon request, to employers for posting on the employer's premises.

Subd. 2.Grants
to community organizations.The
commissioner may make grants to community organizations for the purpose of
outreach to and education for employees affected by sections 181.939 and
181.9441 regarding those employees' rights under those sections.The community-based organizations must be
selected based on their experience, capacity, and relationships in
high-violation industries.The work
under such a grant may include the creation and administration of a statewide
worker hotline.

(1) net interest income on obligations of
any authority, commission, or instrumentality of the United States to the
extent includable in taxable income for federal income tax purposes but exempt
from state income tax under the laws of the United States;

(2) if included in federal taxable income,
the amount of any overpayment of income tax to Minnesota or to any other state,
for any previous taxable year, whether the amount is received as a refund or as
a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the
amount used to claim the credit allowed under section 290.0674, not to exceed
$1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for
each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary
school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin,
wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the
provisions of the Civil Rights Act of 1964 and chapter 363A.For the purposes of this clause,
"tuition" includes fees or tuition as defined in section 290.0674,
subdivision 1, clause (1).As used in
this clause, "textbooks" includes books and other instructional materials
and equipment purchased or leased for use in elementary and secondary schools
in teaching only those subjects legally and commonly taught in public
elementary and secondary schools in this state.Equipment expenses qualifying for deduction includes expenses as defined
and limited in section 290.0674, subdivision 1, clause (3)."Textbooks" does not include
instructional books and materials used in the teaching of religious tenets,
doctrines, or worship, the purpose of which is to instill such tenets,
doctrines, or worship, nor does it include books or materials for, or
transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar
programs.No deduction is permitted for
any expense the taxpayer incurred in using the taxpayer's or the qualifying
child's vehicle to provide such transportation for a qualifying child.For purposes of the subtraction provided by
this clause, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code;

(4) income as provided under section
290.0802;

(5) to the extent included in federal
adjusted gross income, income realized on disposition of property exempt from
tax under section 290.491;

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(6) to the extent not deducted
or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code
in determining federal taxable income by an individual who does not itemize
deductions for federal income tax purposes for the taxable year, an amount
equal to 50 percent of the excess of charitable contributions over $500
allowable as a deduction for the taxable year under section 170(a) of the
Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law
111-126;

(7) for individuals who are allowed a
federal foreign tax credit for taxes that do not qualify for a credit under
section 290.06, subdivision 22, an amount equal to the carryover of subnational
foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit.For purposes of this clause, "federal
foreign tax credit" means the credit allowed under section 27 of the
Internal Revenue Code, and "carryover of subnational foreign taxes"
equals the carryover allowed under section 904(c) of the Internal Revenue Code
minus national level foreign taxes to the extent they exceed the federal foreign
tax credit;

(8) in each of the five tax years
immediately following the tax year in which an addition is required under
subdivision 19a, clause (7), or 19c, clause (12), in the case of a shareholder
of a corporation that is an S corporation, an amount equal to one-fifth of
the delayed depreciation.For purposes
of this clause, "delayed depreciation" means the amount of the
addition made by the taxpayer under subdivision 19a, clause (7), or subdivision
19c, clause (12), in the case of a shareholder of an S corporation, minus
the positive value of any net operating loss under section 172 of the Internal
Revenue Code generated for the tax year of the addition.The resulting delayed depreciation cannot be
less than zero;

(9) job opportunity building zone income as
provided under section 469.316;

(10) to the extent included in federal
taxable income, the amount of compensation paid to members of the Minnesota
National Guard or other reserve components of the United States military for
active service, including compensation for services performed under the Active
Guard Reserve (AGR) program.For
purposes of this clause, "active service" means (i) state active
service as defined in section 190.05, subdivision 5a, clause (1); or (ii)
federally funded state active service as defined in section 190.05, subdivision
5b, and "active service" includes service performed in accordance
with section 190.08, subdivision 3;

(11) to the extent included in federal
taxable income, the amount of compensation paid to Minnesota residents who are
members of the armed forces of the United States or United Nations for active
duty performed under United States Code, title 10; or the authority of the
United Nations;

(12) an amount, not to exceed $10,000, equal
to qualified expenses related to a qualified donor's donation, while living, of
one or more of the qualified donor's organs to another person for human organ
transplantation.For purposes of this
clause, "organ" means all or part of an individual's liver, pancreas,
kidney, intestine, lung, or bone marrow; "human organ
transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person;
"qualified expenses" means unreimbursed expenses for both the
individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost
wages net of sick pay, except that such expenses may be subtracted under this
clause only once; and "qualified donor" means the individual or the
individual's dependent, as defined in section 152 of the Internal Revenue Code.An individual may claim the subtraction in
this clause for each instance of organ donation for transplantation during the
taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately
following the tax year in which an addition is required under subdivision 19a,
clause (8), or 19c, clause (13), in the case of a shareholder of a corporation
that is an S corporation, an amount equal to one-fifth of the addition
made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in
the case of a shareholder of a corporation that is an S corporation, minus
the positive value of any net operating loss under section 172 of the Internal
Revenue Code generated for the tax year of the addition.If the net operating loss exceeds the
addition for the tax year, a subtraction is not allowed under this clause;

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(14) to the extent included in
the federal taxable income of a nonresident of Minnesota, compensation paid to
a service member as defined in United States Code, title 10, section 101(a)(5),
for military service as defined in the Servicemembers Civil Relief Act, Public
Law 108-189, section 101(2);

(15) to the extent included in federal
taxable income, the amount of national service educational awards received from
the National Service Trust under United States Code, title 42, sections 12601
to 12604, for service in an approved Americorps National Service program;

(16) to the extent included in federal
taxable income, discharge of indebtedness income resulting from reacquisition
of business indebtedness included in federal taxable income under section
108(i) of the Internal Revenue Code.This
subtraction applies only to the extent that the income was included in net
income in a prior year as a result of the addition under subdivision 19a,
clause (13);

(18) the amount of expenses not allowed
for federal income tax purposes due to claiming the railroad track maintenance
credit under section 45G(a) of the Internal Revenue Code;

(19) the amount of the limitation on
itemized deductions under section 68(b) of the Internal Revenue Code;

(20) the amount of the phaseout of
personal exemptions under section 151(d) of the Internal Revenue Code; and

(21) to the extent included in federal
taxable income, the amount of qualified transportation fringe benefits
described in section 132(f)(1)(A) and (B) of the Internal Revenue Code.The subtraction is limited to the lesser of
the amount of qualified transportation fringe benefits received in excess of
the limitations under section 132(f)(2)(A) of the Internal Revenue Code for the
year or the difference between the maximum qualified parking benefits
excludable under section 132(f)(2)(B) of the Internal Revenue Code minus the
amount of transit benefits excludable under section 132(f)(2)(A) of the
Internal Revenue Code.; and

Subd. 2.Submission
of records; penalty.The
commissioner may require the employer of employees working in the state to
submit to the commissioner photocopies, certified copies, or, if necessary, the
originals of employment records which the commissioner deems necessary or
appropriate.The records which may be
required include full and correct statements in writing, including sworn
statements by the employer, containing information relating to wages, hours,
names, addresses, and any other information pertaining to the employer's
employees and the conditions of their employment as the commissioner deems
necessary or appropriate.

The commissioner may require the records
to be submitted by certified mail delivery or, if necessary, by personal
delivery by the employer or a representative of the employer, as authorized by
the employer in writing.

The commissioner may fineorder
the employer to pay a civil penalty of up to $1,000$2,000
for each failure to submit or deliver records as required by this section.This penalty is in addition to any penalties
provided under section 177.32, subdivision 1.In determining the amount of a civil penalty under this subdivision, the
appropriateness of such penalty to the size of the employer's business and the
gravity of the violation shall be considered.

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Subd. 4.Compliance
orders.The commissioner may issue
an order requiring an employer to comply with sections 177.21 to 177.435,
181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.12, 181.13, 181.14,
181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a,
181.722, 181.79, and 181.939 to 181.943181.9441, or with any
rule promulgated under section 177.28.The
commissioner shall issue an order requiring an employer to comply with sections
177.41 to 177.435 if the violation is repeated.For purposes of this subdivision only, a violation is repeated if at any
time during the two years that preceded the date of violation, the commissioner
issued an order to the employer for violation of sections 177.41 to 177.435 and
the order is final or the commissioner and the employer have entered into a
settlement agreement that required the employer to pay back wages that were
required by sections 177.41 to 177.435.The
department shall serve the order upon the employer or the employer's authorized
representative in person or by certified mail at the employer's place of
business.An employer who wishes to
contest the order must file written notice of objection to the order with the
commissioner within 15 calendar days after being served with the order.A contested case proceeding must then be held
in accordance with sections 14.57 to 14.69.If, within 15 calendar days after being served with the order, the
employer fails to file a written notice of objection with the commissioner, the
order becomes a final order of the commissioner.

Subdivision 1.General
authority.(a) The
commissioner may adopt rules, including definitions of terms, to carry out the
purposes of sections 177.21 to 177.44, to prevent the circumvention or evasion
of those sections, and to safeguard the minimum wage and overtime rates
established by sections 177.24 and 177.25.

(b) The commissioner may adopt rules to
carry out the purposes of sections 181.939 to 181.9441.

Sec. 4.[177.36]
REPORT TO LEGISLATURE.

(a) The commissioner must submit an
annual report to the legislature, including to the chair and ranking minority
member of any relevant legislative committee.The report must include, but is not limited to:

(1) a list of all violations of
statutory sections listed in section 177.27, subdivision 4, including the
employer involved, and the nature of any violations; and

(2) an analysis of noncompliance with
the statutory sections listed in section 177.27, subdivision 4, including any
patterns by employer, industry, or county.

(b) A report under this section must
not include an employee's name or other identifying information, any health or
medical information regarding an employee or an employee's family member, or
any information pertaining to domestic abuse, sexual assault, or stalking of an
employee or an employee's family member.

Sec. 5.Minnesota Statutes 2014, section 181.032, is
amended to read:

181.032
REQUIRED STATEMENT OF EARNINGS BY EMPLOYER.

(a) At the end of each pay period, the
employer shall provide each employee an earnings statement, either in writing
or by electronic means, covering that pay period.An employer who chooses to provide an
earnings statement by electronic means must provide employee access to an
employer-owned computer during an employee's regular working hours to review
and print earnings statements.

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(b) The earnings statement may
be in any form determined by the employer but must include:

(1) the name of the employee;

(2) the hourly rate of pay (if
applicable);

(3) the total number of hours worked by
the employee unless exempt from chapter 177;

(4) the total amount of gross pay earned
by the employee during that period;

(5) the total amount of overtime pay
earned by the employee during that period;

(6) the total amount of gratuities
earned by the employee during that period;

(7) the total amount of any additional
compensation paid to the employee during that period, including any
predictability pay under section 181.99;

(8) the total amount of expense
reimbursements paid to the employee during that period;

(5)(9) a list of deductions
made from the employee's pay;

(6)(10) the net amount of
pay after all deductions are made;

(7)(11) the date on which
the pay period ends; and

(8)(12) the legal name of
the employer and the operating name of the employer if different from the legal
name;

(13) the total amount of
employer-provided leave used by the employee during that pay period; and

(14) the total amount of
employer-provided leave available for the employee to use.

(c) An employer must provide earnings
statements to an employee in writing, rather than by electronic means, if the
employer has received at least 24 hours notice from an employee that the
employee would like to receive earnings statements in written form.Once an employer has received notice from an
employee that the employee would like to receive earnings statements in written
form, the employer must comply with that request on an ongoing basis.

Sec. 6.Minnesota Statutes 2014, section 181.940, is
amended to read:

181.940
DEFINITIONS.

Subdivision 1.Scope.For the purposes of sections 181.940 to 181.944181.9441, the terms defined in this section have the meanings given
them.

Subd. 2.Employee."Employee" means a person
who performs services for hire for anan individual employed by an
employer from whom a leave is requested under sections 181.940 to 181.944
for:who has performed at least
680 hours of work for that employer or who has worked for that employer for at
least 17 weeks.Employee does not mean
an independent contractor.

(1) at least 12 months preceding the request;
and

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(2) for an average number of
hours per week equal to one-half the full-time equivalent position in the
employee's job classification as defined by the employer's personnel policies
or practices or pursuant to the provisions of a collective bargaining
agreement, during the 12-month period immediately preceding the leave.

Employee includes all individuals
employed at any site owned or operated by the employer but does not include an
independent contractor.

Subd. 3.Employer."Employer" means a person or
entity that employs 21one or more employees at at least one
site, except that, for purposes of the school leave allowed under section
181.9412, employer means a person or entity that employs one or more employees
in Minnesota.The term includes an
individual, corporation, partnership, association, nonprofit organization,
group of persons, state, county, town, city, school district, or other
governmental subdivision.

Subd. 4.Child."Child" means an individual
under 18 years of age or an individual under age 20 who is still attending
secondary school.

Subd. 6.FMLA."FMLA" means the Family and
Medical Leave Act of 1993, United States Code, title 29, section 2601, et seq.,
as amended through the effective date of this section.

Subd. 7.Commissioner."Commissioner" means the
commissioner of labor and industry or authorized designee or representative.

Sec. 7.Minnesota Statutes 2014, section 181.942, is
amended to read:

181.942
REINSTATEMENT AFTER LEAVE.

Subdivision 1.Comparable
position.(a) An employee returning
from a leave of absence under section 181.941 is entitled to return to
employment in the employee's former position or in a position of comparable
duties, number of hours, and pay.An
employee returning from a leave of absence longer than one month must notify a
supervisor at least two weeks prior to return from leave.An employee returning from a leave under
section 181.9412 or 181.9413181.9441 is entitled to return to
employment in the employee's former position.

(b) If, during a leave under sections
181.940 to 181.944181.9441, the employer experiences a layoff
and the employee would have lost a position had the employee not been on leave,
pursuant to the good faith operation of a bona fide layoff and recall system,
including a system under a collective bargaining agreement, the employee is not
entitled to reinstatement in the former or comparable position.In such circumstances, the employee retains
all rights under the layoff and recall system, including a system under a
collective bargaining agreement, as if the employee had not taken the leave.

Subd. 2.Pay;
benefits; on return.An employee
returning from a leave of absence under sections 181.940 to 181.944181.9441
is entitled to return to employment at the same rate of pay the employee had been
receiving when the leave commenced, plus any automatic adjustments in the
employee's pay scale that occurred during leave period.The employee returning from a leave is
entitled to retain all accrued preleave benefits of employment and seniority,
as if there had been no interruption in service; provided that nothing in
sections 181.940 to 181.944181.9441 prevents the accrual of
benefits or seniority during the leave pursuant to a collective bargaining or
other agreement between the employer and employees.

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1222

Subd. 3.Part-time
return.An employee, by agreement
with the employer, may return to work part time during the leave period without
forfeiting the right to return to employment at the end of the leave period, as
provided in sections 181.940 to 181.944181.9441.

Sec. 8.Minnesota Statutes 2014, section 181.944, is
amended to read:

181.944
INDIVIDUAL REMEDIES.

In addition to any other remedies provided
by law, a person injured by a violation of sections 181.172, paragraph (a) or
(d), and 181.939 to 181.943181.9441 may bring a civil action to
recover any and all damages recoverable at law, together with costs and
disbursements, including reasonable attorney's fees, and may receive injunctive
and other equitable relief as determined by a court.

Sec. 9.[181.9441]
EARNED SICK AND SAFE TIME.

Subdivision 1.Definitions.(a) For the purposes of this section,
the terms defined in this subdivision have the meanings given them.

(b) "Domestic abuse" has the
same meaning as given in section 518B.01.

(c) "Earned sick and safe
time" means leave, including paid time off and other paid leave systems,
that are paid at the same hourly rate as an employee earns from employment.

(d) "Sexual assault" means an
act that constitutes a violation under sections 609.342 to 609.3453, or
609.352.

(e) "Stalking" has the same
meaning as given in section 609.749.

Subd. 2.Accrual
of earned sick and safe time.(a)
An employee accrues a minimum of one hour of earned sick and safe time for
every 30 hours worked.Except as
provided in paragraph (b), an employee may not accrue more than 72 hours of
earned sick and safe time in a calendar year unless the employer agrees to a
higher amount.

(b) Employees of an employer that
employs fewer than 21 employees may not accrue more than 40 hours of earned
sick and safe time in a calendar year unless the employer agrees to a higher
amount.

(c) Employees who are exempt from
overtime requirements under United States Code, title 29, section 213(a)(1), as
amended through the effective date of this section, are deemed to work 40 hours
in each work week for purposes of accruing earned sick and safe time, except that
an employee whose normal work week is less than 40 hours will accrue earned
sick and safe time based upon the normal work week.

(d) Earned sick and safe time under
this section begins to accrue at the commencement of employment of the
employee.

(e) Employees shall be entitled to use
accrued earned sick and safe time beginning 90 calendar days following
commencement of their employment.After
90 calendar days of employment, employees may use earned sick and safe time as
it is accrued.

Subd. 3.Use
of earned sick and safe time.(a)
An employee may use accrued earned sick and safe time for:

(1) an employee's:

(i) mental or physical illness, injury,
or health condition;

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(ii) need for medical
diagnosis, care, or treatment of a mental or physical illness, injury, or
health condition; or

(iii) need for preventive medical or
health care;

(2) care of a family member:

(i) with a mental or physical illness,
injury, or health condition;

(ii) who needs medical diagnosis, care,
or treatment of a mental or physical illness, injury, or health condition; or

(iii) who needs preventive medical or
health care;

(3) absence due to domestic abuse,
sexual assault, or stalking of the employee or employee's family member,
provided the absence is to:

(iv) seek relocation due to domestic
abuse, sexual assault, or stalking; or

(v) take legal action, including
preparing for or participating in any civil or criminal legal proceeding
related to or resulting from domestic abuse, sexual assault, or stalking; and

(4) closure of the employee's place of
business due to weather or other emergency, or an employee's need to care for a
child whose school or place of care has been closed due to weather or other
public emergency.

(b) An employer may require notice of
the need for use of earned sick and safe time as follows.If the need for use is foreseeable, an
employer may require advance notice of the intention to use earned sick and
safe time, but in no case shall require more than seven days' advance notice.If the need is not foreseeable, an employer
may require an employee to give notice of the need for earned sick and safe
time as soon as practicable.

(c) When an employee uses earned sick
and safe time for more than three consecutive days, an employer may require
reasonable documentation that the earned sick and safe time is covered by
paragraph (a).For earned sick and safe
time under paragraph (a), clauses (1) and (2), reasonable documentation may
include a signed statement by a health care professional indicating the need
for use of earned sick and safe time.For
earned sick and safe time under paragraph (a), clause (3), an employer must
accept a court record or documentation signed by a volunteer for or employee of
a victims services organization, an attorney, a police officer, or antiviolence
counselor as reasonable documentation.

(d) An employer may not require, as a
condition of an employee's using earned sick and safe time, that the employee
seek or find a replacement worker to cover the hours during which the employee
uses earned sick and safe time.

(e) Earned sick and safe time may be
used in hourly increments or, at the discretion of the employer, increments of
less than one hour.

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Subd. 4.Retaliation
prohibited.An employer shall
not retaliate against an employee because the employee has requested earned
sick and safe time, used earned sick and safe time, or made a complaint or
filed an action to enforce a right to earned sick and safe time under this
section.

Subd. 5.Notice
and posting.(a) Employers
shall give notice that employees are entitled to earned sick and safe time, the
amount of earned sick and safe time, and the terms of its use under this
section; that retaliation against employees who request or use earned sick and
safe time is prohibited; and that each employee has the right to file a
complaint or bring a civil action if earned sick and safe time is denied by the
employer or the employee is retaliated against for requesting or using earned
sick and safe time.

(b) Employers may comply with this
section by supplying employees with a notice in English and other appropriate
languages that contains the information required in paragraph (a).

(c) Employers may comply with this
section by displaying a poster in a conspicuous and accessible place in each
establishment where employees are employed which contains all information
required under paragraph (a).

(d) An employer that provides an
employee handbook to its employees must include in the handbook notice of
employee rights and remedies under this section.

Subd. 6.Confidentiality
and nondisclosure.If, in
conjunction with this section, an employer possesses health or medical
information regarding an employee or an employee's family member or information
pertaining to domestic abuse, sexual assault, or stalking of an employee or an
employee's family member, the employer must treat such information as
confidential and not disclose the information except with permission of the
employee.

Subd. 7.No
effect on more generous policies.(a)
Nothing in this section shall be construed to discourage employers from
adopting or retaining earned sick and safe time policies that meet or exceed,
and do not otherwise conflict with, the minimum standards and requirements
provided in this section.

(b) Nothing in this section shall be
construed to limit the right of parties to a collective bargaining agreement to
bargain and agree with respect to earned sick and safe time policies or to
diminish the obligation of an employer to comply with any contract, collective
bargaining agreement, or any employment benefit program or plan that meets or
exceeds, and does not otherwise conflict with, the minimum standards and
requirements provided in this section.

(c) Employers who provide their
employees earned sick and safe time under a paid time off policy or other paid
leave policy that meets or exceeds, and does not otherwise conflict with, the
minimum standards and requirements provided in this section are not required to
provide additional earned sick and safe time.

Subd. 8.Termination,
separation, transfer.Nothing
in this section may be construed as requiring financial or other reimbursement
to an employee from an employer upon the employee's termination, resignation,
retirement, or other separation from employment for accrued earned sick and
safe time that has not been used.If an
employee is transferred to a separate division, entity, or location, but
remains employed by the same employer, the employee is entitled to all earned
sick and safe time accrued at the prior division, entity, or location and is
entitled to use all earned sick and safe time as provided in this section.When there is a separation from employment
and the employee is rehired within 12 months of separation by the same
employer, previously accrued earned sick and safe time that had not been used
must be reinstated.An employee is
entitled to use accrued earned sick and safe time and accrue additional earned
sick and safe time at the commencement of reemployment.

Sec. 10.REPEALER.

Minnesota Statutes 2014, section
181.9413, is repealed.

Sec. 11.EFFECTIVE
DATE.

This article is effective 180 days
following final enactment.

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Subd. 4.Compliance
orders.The commissioner may issue
an order requiring an employer to comply with sections 177.21 to 177.435,
181.02, 181.03, 181.031, 181.032, 181.101, 181.11, 181.12, 181.13, 181.14,
181.145, 181.15, 181.172, paragraph (a) or (d), 181.275, subdivision 2a,
181.722, 181.79, and 181.939 to 181.943, orand 181.99, and
with any rule promulgated under section 177.28.The commissioner shall issue an order requiring an employer to comply
with sections 177.41 to 177.435 if the violation is repeated.For purposes of this subdivision only, a
violation is repeated if at any time during the two years that preceded the
date of violation, the commissioner issued an order to the employer for
violation of sections 177.41 to 177.435 and the order is final or the
commissioner and the employer have entered into a settlement agreement that
required the employer to pay back wages that were required by sections 177.41
to 177.435.The department shall serve
the order upon the employer or the employer's authorized representative in
person or by certified mail at the employer's place of business.An employer who wishes to contest the order
must file written notice of objection to the order with the commissioner within
15 calendar days after being served with the order.A contested case proceeding must then be held
in accordance with sections 14.57 to 14.69.If, within 15 calendar days after being served with the order, the
employer fails to file a written notice of objection with the commissioner, the
order becomes a final order of the commissioner.

Sec. 2.[181.99]
NOTICE OF EMPLOYEE SCHEDULES.

Subdivision 1.Definitions.(a) For the purposes of this section,
the terms defined in this subdivision have the meanings given them.

(b) "Commissioner" means the
commissioner of labor and industry or authorized designee or representative.

(c) "Employee" means an
individual employed by an employer.

(d) "Employer" means a person
or entity that employs one or more employees.The term includes an individual, corporation, partnership, association,
nonprofit organization, group of persons, state, county, town, city, school
district, or other governmental subdivision.

(e) "Flexible working
arrangement" means a change in an employee's terms and conditions of
employment with respect to work schedule, including, but not limited to, a
modified work schedule, changes in start or end times in a work schedule or work
shift, a predictable, stable work schedule, part-time employment, job sharing
arrangements, working from home, telecommuting, limitations on the employee's
availability to work, the location of the employee's worksite, reduction or
change in work duties, or part-year employment.

(f) "On-call shift" or
"on-call hours" mean time that an employer requires an employee to be
available to work, and to contact the employer or its designee or wait to be
contacted by the employer or its designee to determine whether the employee
must report to work at that time.

(g) "Predictability pay"
means payments to an employee, calculated on an hourly basis at the employee's
regular rate of pay, for applicable schedule changes pursuant to subdivision 4.An employer must pay an employee
predictability pay, when required by this section, in addition to any wages
earned for work performed by the employee.An employer must pay predictability pay to an employee in the same pay
period in which it was incurred by the employer.

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(h) "Shift" means the
consecutive hours an employer requires an employee to work or to be on call to
work.Breaks totalling two hours or less
shall not be considered an interruption of consecutive hours.

(i) "Work week" means a
fixed, consecutive seven-day period.

(j) "Work schedule" means all
of an employee's regular and on-call shifts during a work week.

Subd. 2.Advance
notice of work schedules.(a)
An employer must give each employee the employee's individual initial work
schedule, in writing, at least 21 days before the first day of that work
schedule.An employer must contact each
employee to notify the employee of any change in the employee's work schedule
before the change takes effect and must provide the employee with a revised
written work schedule reflecting any changes within 24 hours of making the
change.

(b) On or before the beginning of an
employee's employment, the employer must provide the employee with a written
work schedule for the employee's first 21 days of employment.

(c) An employer may not require an
employee to work hours not included in the employee's initial written work
schedule without consent in writing by the employee.

(d) An employer must post a written
schedule that includes the shifts of all current employees at a worksite at
least 21 days before the start of each work week, whether or not they are
scheduled to work or be on call that week.The employer must update that posted schedule within 24 hours of any
change.The written schedule must be
posted in a place that is readily accessible and visible to all employees at a
worksite.

(e) An employee's work week must begin
on the same day of the week each week, unless the employer provides 21 days
advance written notice of a change in the start day of the work week.

(f) An employee has the right to
request a change in work schedule, request to limit his or her availability to
work particular hours, or otherwise provide input into the employee's work
schedule.

(g) An employer must not require an
employee to seek or find a replacement employee for any shifts or hours an
employee is unable to work.

Subd. 3.Flexible
working arrangements.(a) An employee
has a right to request a flexible working arrangement at any time.Such a request must be in writing.

(b) An employer must consider an
employee's request for a flexible working arrangement in good faith and engage
in an interactive process with the employee to consider the request and
determine whether the request can be granted in a manner consistent with the
employer's business operations or legal or contractual obligations.The employer must begin this interactive
process within two days of receiving the request.If information provided by the employee
making a request for a flexible working arrangement requires clarification, the
employer must explain what further information is needed and give the employee
reasonable time to produce the information.

(c) After engaging in the interactive
process, an employer must notify the employee of its decision regarding a
flexible working arrangement, in writing, within two days of its last
communication with the employee during the interactive process.

(d) If an employee requests a flexible
working arrangement because of a serious health condition of the employee, the
employee's responsibilities as a caregiver, or the employee's enrollment in a
career-related educational or training program, or if a part-time employee
makes the request for a reason related to a second job, the employer must grant
the request.

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Subd. 4.Predictability
pay required.(a) Within 21
days of, but not less than 24 hours from, the start of an employee's shift, an
employer may do any of the following provided the employer pays the affected
employee one hour of predictability pay in addition to wages earned for each
changed shift, if any:

(1) subtract hours from a shift;

(2) add hours to a shift or add a shift;

(3) cancel a shift; or

(4) change the start or end time of a
shift.

(b) Within 24 hours of the start of an
employee's shift, an employer may do either of the following provided the
employer pays the affected employee one hour of predictability pay in addition
to wages earned for each changed shift:

(1) change the start or end time of a
shift without changing the total number of hours in the shift; or

(2) add hours to a shift.

(c) Whenever an employee is scheduled to
work a shift, and the employer cancels the shift or reduces the hours in the
shift with less than 24 hours notice, the employer must pay the employee the
lesser of four hours of predictability pay or predictability pay equal to the
number of hours originally scheduled for the shift.

(d) An employer is not required to pay
an employee any predictability pay under this subdivision when a schedule
change is the result of the employee's request, including, but not limited to,
a request to trade shifts with another employee, to use sick leave, vacation
time, or any other type of leave.

(e) An employer is not required to pay
an employee any predictability pay under this subdivision when a schedule
change is the result of mutually agreed upon shift trade among employees.

Subd. 5.Exception
for suspended operations.The
requirements of subdivisions 2 to 4 do not apply to an employer when that
employer's operations are suspended:

(1) due to threats to employees or
property;

(2) when civil authorities have
recommended that work not begin or continue;

(3) due to failure of public utilities
or sewer systems or because public utilities fail to supply electricity, water,
or gas; or

(4) due to a natural disaster or weather
event.

Subd. 6.Right
to rest.An employee has the
right to decline work hours that occur (1) less than 11 hours after the end of
the previous shift, or (2) during the 11 hours following the end of a shift
that spanned two days.An employer must
pay an employee 1-1/2 times the employee's regular rate of pay for any such
hours worked.

Subd. 7.No
discrimination based on hours of work.(a) An employer must not pay a different regular rate of pay
based on the number of hours an employee is scheduled to work to employees
whose jobs require equal skill, effort, and duties, and that are performed
under similar working conditions.An
employer may pay different hourly wages based on other reasons, such as
seniority systems, merit, employee responsibilities, or systems that measure
earnings by quantity or quality of production.

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(b) An employer must not condition
eligibility for leave or time off based on the number of hours an employee is
scheduled to work for employees whose jobs require equal skill, effort, and
duties, and that are performed under similar working conditions.An employer may prorate employee leave or
time off based on the number of hours the employee works.

(c) An employer must not condition
eligibility for raises or promotions based on the number of hours an employee
is scheduled to work for employees whose jobs require equal skill, effort, and
duties, and that are performed under similar working conditions.Employers may condition eligibility for
raises on other reasons, such as seniority systems, merit, employee
responsibilities, or the nature and amount of an employee's work experience.

Subd. 8.Access
to hours.If an employer has
additional hours of work available in positions held by current employees, the
employer must offer those hours to current qualified employees before hiring
new employees or contractors, including the use of temporary services or
staffing agencies.

Subd. 9.Record
keeping requirements.(a) An
employer must keep an accurate record of:

(1) the name, address, and occupation of
each employee;

(2) the amount paid each pay period to
each employee;

(3) the hours worked each day and each
week by each employee; and

(4) each employee's initial work
schedule and all subsequent revisions to that work schedule.

(b) An employer must keep the records
required by this subdivision for at least two years after the entry date of the
record.The records must be maintained
at the place of employment, at an office of the employer, or with a bank,
accountant, or other central location, and must be open to inspection and
available upon request by the commissioner.

(c) An employer must allow an employee
to inspect records required by this subdivision and relating to that employee
at a reasonable time and place.

(d) The commissioner may impose a civil
penalty of up to $1,000 on an employer for each failure to keep, furnish, or
allow inspection of records under this subdivision.

Subd. 10.Employer
retaliation.No employer
shall discharge or take any other adverse action against any person in
retaliation for asserting any claim or right under this section, for assisting
any other person in doing so, or for informing any person about their rights
under this section.An employer taking
any adverse action against a person within one year of a person's engaging in
the foregoing activities shall raise a presumption that such action was
retaliation, which may be rebutted by clear and convincing evidence that such
action was taken for other permissible reasons.

Subd. 11.Individual
remedies.In addition to any
other remedies available in law or equity, an employee may bring a civil action
seeking redress for a violation or violations of this section directly to any
court of competent jurisdiction.An
employee may recover any and all damages recoverable at law plus an additional
amount equal to twice those damages, together with costs and disbursements
including reasonable attorney fees, and may receive injunctive and other
equitable relief as determined by a court.

Subd. 12.Encouragement
of more generous policies.(a)
Nothing in this section shall be construed to discourage employers from
adopting or retaining policies that meet or exceed, and do not otherwise
conflict with, the minimum standards and requirements provided in this section.

(b) This section does not apply to
employees covered under a collective bargaining agreement with an employer."

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1229

Dehn,
R., moved that the Minority Report from the Committee on Commerce and
Regulatory Reform relating to H. F. No. 1555 be substituted for the Majority
Report and that the Minority Report be now adopted.

A
roll call was requested and properly seconded.

LAY ON THE TABLE

Peppin
moved that the Minority Report on H. F. No. 1555 be laid on the table.

A
roll call was requested and properly seconded.

The
question was taken on the Peppin motion and the roll was called.There were 69 yeas and 61 nays as follows:

Those
who voted in the affirmative were:

Albright

Anderson, P.

Anderson, S.

Backer

Baker

Barrett

Bennett

Christensen

Cornish

Daniels

Davids

Dean, M.

Dettmer

Drazkowski

Erickson

Fenton

Franson

Garofalo

Green

Gruenhagen

Gunther

Hamilton

Hancock

Heintzeman

Hertaus

Hoppe

Howe

Johnson, B.

Kelly

Knoblach

Koznick

Kresha

Lohmer

Loon

Loonan

Lucero

Lueck

Mack

McDonald

McNamara

Miller

Nash

Newberger

Nornes

O'Driscoll

O'Neill

Pelowski

Peppin

Petersburg

Peterson

Pierson

Pugh

Quam

Rarick

Runbeck

Sanders

Schomacker

Scott

Smith

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Vogel

Whelan

Wills

Zerwas

Spk. Daudt

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Those who voted in the negative were:

Allen

Anzelc

Applebaum

Atkins

Bernardy

Bly

Carlson

Clark

Considine

Davnie

Dehn, R.

Dill

Erhardt

Fischer

Freiberg

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Melin

Metsa

Moran

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Persell

Pinto

Poppe

Rosenthal

Schoen

Schultz

Selcer

Simonson

Slocum

Sundin

Thissen

Wagenius

Ward

Winkler

Yarusso

Youakim

The
motion prevailed and the Minority Report from the Committee on Commerce and
Regulatory Reform relating to H. F. No. 1555 was laid on the table.

The
question recurred on the adoption of the Majority Report from the Committee on
Commerce and Regulatory Reform relating to H. F. No. 1555.The report was adopted.

Mack from the
Committee on Health and Human Services Reform to which was referred:

Subd. 4.Licensure
requirements.(a) An
applicant for licensure under this section shall submit to the commissioner on
a form provided by the commissioner:

(1) proof that the applicant is over the
age of 18;

(2) the type of license the applicant is
applying for;

(3) all fees required under section
146B.10;

(4) proof of completing a minimum of 200
hours of supervised experience within each area for which the applicant is
seeking a license, and must include an affidavit from the supervising licensed
technician;

(5) proof of having satisfactorily
completed coursework within the year preceding application and approved by the
commissioner on bloodborne pathogens, the prevention of disease transmission,
infection control, and aseptic technique.Courses to be considered for approval by the commissioner may include,
but are not limited to, those administered by one of the following:

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(i) the American Red Cross;

(ii) United States Occupational Safety and
Health Administration (OSHA); or

(iii) the Alliance of Professional
Tattooists; and

(6) any other relevant information
requested by the commissioner.

The licensure
requirements of this paragraph are effective for all applicants for new
licenses issued before January 1, 2016.

(b) An applicant for licensure under
this section shall submit to the commissioner on a form provided by the
commissioner:

(1) proof that the applicant is over the
age of 18;

(2) the type of license the applicant is
applying for;

(3) all fees required under section
146B.10;

(4) a log showing completion of the
supervised experience as specified in subdivision 12;

(5) a signed affidavit from each
licensed technician who the applicant listed as providing supervision for each required
activity;

(6) proof of having satisfactorily
completed a minimum of five hours of coursework, within the year preceding
application and approved by the commissioner, on bloodborne pathogens, the
prevention of disease transmission, infection control, and aseptic technique.Courses to be considered for approval by the
commissioner may include, but are not limited to, those administered by one of
the following:

(i) the American Red Cross;

(ii) the United States Occupational
Safety and Health Administration (OSHA); or

(iii) the Alliance of Professional
Tattooists; and

(7) any other relevant information
requested by the commissioner.

The licensure requirements of this paragraph shall be
effective for all applicants for new licenses issued on or after January 1,
2016."

Page 3, line 14, after the semicolon,
insert "and"

Page 3, line 16, delete everything after
"license"

Page 3, line 17, delete everything before
"must"

Page 3, line 18, delete the semicolon and
insert a period

Page 3, delete lines 19 to 27

Page 3, delete section 7

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Page 5, line 19, after "individual"
insert "from an official source"

Page 5, line 28, reinstate the stricken
language

Page 5, line 29, reinstate the stricken
language and delete the new language

Page 5, line 30, delete the new language

Page 6, after line 4, insert:

"(g) No technician shall perform
prohibited body piercings."

Renumber the sections in sequence and
correct the internal references

Correct the title numbers accordingly

With the recommendation that when so
amended the bill be re-referred to the Committee on Health and Human Services
Finance.

The report was adopted.

Sanders from the
Committee on Government Operations and Elections Policy to which was referred:

Subd. 4.License
and rules.(a) The board must adopt
rules to license public school teachers and interns subject to chapter 14.

(b) The board must adopt rules requiring a
person to pass a college-level skills examination in reading, writing,
and mathematics or attain either a composite score composed of the average
of theessentially equivalent passing scores in English and writing,
reading, and mathematics on the ACT Plus Writing recommended by the board, or an
equivalent composite score composed of the average of theessentially
equivalent passing scores in critical reading, mathematics, and writing on
the SAT recommended by the board, as a requirement for initial teacher
licensure, except that the board may issue up to two temporary, one-year
teaching licenses to an otherwise qualified candidate who has not yet passed
the college-level skills exam or attained the requisite composite
scoreessentially equivalent passing scores on the ACT Plus Writing
or SAT.Such rules must require college
and universities offering a board‑approved
teacher preparation program to provide remedial assistance to persons who did
not achieve a qualifying score on the college-level skills
examination or attain the requisite composite scoreessentially
equivalent passing scores on the ACT Plus Writing or SAT, including those
for whom English is a second language.The
requirement to pass a reading, writing, and mathematics college-level
skills examination or attain the requisite composite scoreessentially
equivalent passing scores on the ACT Plus Writing or SAT does not apply to
nonnative English speakers, as verified by qualified Minnesota school district
personnel or Minnesota higher education faculty, who, after meeting the content
and pedagogy requirements under this subdivision, apply for a teaching license
to provide direct instruction in their native language or world language
instruction under section 120B.022, subdivision 1.A teacher candidate's official ACT Plus
Writing or SAT composite score report to the board must not be more than ten
years old at the time of licensure.

(c) The board must adopt rules to approve
teacher preparation programs.The board,
upon the request of a postsecondary student preparing for teacher licensure or
a licensed graduate of a teacher preparation program, shall assist in resolving
a dispute between the person and a postsecondary institution providing a
teacher preparation program when the dispute involves an institution's
recommendation for licensure affecting the person or the person's credentials.At the board's discretion, assistance may
include the application of chapter 14.

(d) The board must provide the leadership
and adopt rules for the redesign of teacher education programs to implement a
research based, results-oriented curriculum that focuses on the skills teachers
need in order to be effective.Among
other components, teacher preparation programs are encouraged to provide a
school-year-long student teaching program that combines clinical opportunities
with academic coursework and in-depth student teaching experiences to offer
students ongoing mentorship, coaching and assessment, help to prepare a
professional development plan, and structured learning experiences.The board shall implement new systems of
teacher preparation program evaluation to assure program effectiveness based on
proficiency of graduates in demonstrating attainment of program outcomes.Teacher preparation programs including
alternative teacher preparation programs under section 122A.245, among other
programs, must include a content-specific, board-approved, performance‑based
assessment that measures teacher candidates in three areas:planning for instruction and

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assessment; engaging students
and supporting learning; and assessing student learning.The board's redesign rules must include
creating flexible, specialized teaching licenses, credentials, and other
endorsement forms to increase students' participation in language immersion
programs, world language instruction, career development opportunities,
work-based learning, early college courses and careers, career and technical
programs, Montessori schools, and project and place-based learning, among other
career and college ready learning offerings.

(e) The board must adopt rules requiring
candidates for initial licenses to pass an examination of general pedagogical
knowledge and examinations of licensure-specific teaching skills.The rules shall be effective by September 1,
2001.The rules under this paragraph
also must require candidates for initial licenses to teach prekindergarten or
elementary students to pass, as part of the examination of licensure-specific
teaching skills, test items assessing the candidates' knowledge, skill, and
ability in comprehensive, scientifically based reading instruction under
section 122A.06, subdivision 4, and their knowledge and understanding of the
foundations of reading development, the development of reading comprehension,
and reading assessment and instruction, and their ability to integrate that
knowledge and understanding.

(f) The board must adopt rules requiring
teacher educators to work directly with elementary or secondary school teachers
in elementary or secondary schools to obtain periodic exposure to the
elementary or secondary teaching environment.

(g) The board must grant licenses to
interns and to candidates for initial licenses based on appropriate professional
competencies that are aligned with the board's licensing system and students'
diverse learning needs.All teacher
candidates must have preparation in English language development and content
instruction for English learners in order to be able to effectively instruct
the English learners in their classrooms.